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:

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