One Key Reason for the Federal Government to Regulate Banks

question 36

Multiple Choice

One key reason for the federal government to regulate banks is that

• A)it will lose profit tax revenue if a bank fails.
• B)taxpayers' money will be used to pay off losses in bank deposits if a bank fails.
• C)it wants to ensure that people can borrow as much as they want.
• D)it tries to protect domestic banks from foreign competition.
• E)it tries to keep interest rates at low levels.

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Definitions:

Jacobins

A radical and influential political club during the French Revolution known for promoting republican ideals and for their role in the Reign of Terror.

Bill of Rights

The first ten amendments to the United States Constitution that guarantee certain fundamental rights and protections to American citizens, including freedom of speech, religion, and the press.

Impressment

The practice used by navies to force civilians or sailors into military service, notably by the British Royal Navy during the 18th and early 19th centuries, often leading to tensions with other countries.