Question

Question 6(Multiple Choice Worth 3 points)

(06.07 MC)
Which statement describes one government role in controlling financial institutions?
The government directly influences the price of stocks in the stock market by taxing purchases of stock.
O The government limits which people are able to take out loans from private banks.
O The government limits what a credit card company can charge its customers in fees.
O The government directly provides the money to banks that is used to provide loans.

Answer 1

The correct answer is:

O The government limits what a credit card company can charge its customers in fees.

The government can regulate the financial industry by setting limits on what fees financial institutions can charge their customers. For example, the government can set limits on the interest rates that credit card companies can charge, or the fees that banks can charge for ATM withdrawals.

The other options are not accurate descriptions of the government's role in controlling financial institutions. The government does not directly influence the price of stocks in the stock market, and it does not directly provide the money to banks that is used to provide loans.

Step-by-step explanation: