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VashaNatasha [74]
3 years ago
6

Government regulations on credit aim to

Social Studies
2 answers:
weqwewe [10]3 years ago
8 0

Answer:

Correct answer here is: Support those borrowing credit.

Explanation:

The attempt by governments all over the world, and especially in the United States, to regulate credit and the lending of money by financial institutions to individuals began in earnest during the 1960´s, and in the U.S, this became real with the passing of the Consumer Credit Protection Act, of 1968. However, never before was credit lending more controlled and protected than after the crisis of 2008, when the world almost faced a recession so severe, that it made experts believe the world was headed for a new Great Depression. The reason for this crisis was the immense mortgage bubble that was created, especially in the U.S, and the imminent scenario of financial institutions lending credit to people at really high risks, without employment, and without any backups. There was no control over these credits and both individuals and financial institutions embarked on a circle of lending and debt that led several of these institutions to bankruptcy. Because of this, in 2010, a new consumer protection act was passed to seek financial stability. With it, and for the first time, the U.S government took severe regulatory measures and put financial institutions under control, in order to protect consumers and prevent institutions from lending without certain limitations.

Lera25 [3.4K]3 years ago
8 0

Answer:

c

Explanation:

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2 years ago
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