Question

Which of the following examples illustrates a type of control the government exercises over the banking industry?

Answer 1

C. Creating laws that limit the fees a credit card company can charge it's customers.

Answer 2

Answer:

I believe that the best answer from the option in the list to the question: Which of the following examples illustrates a type of control the government exercises over the banking industry, would be, C: Creating laws that limit the fees a credit card company can charge its customers.

Explanation:

Ever since the crisis of 2008, the federal government in the United States decided to intervene like never before in the way that the banking system was managing its processes, in order to protect both the system and customers, from another such crisis. In order to do so, the federal government passed several policies and legislation, to bring banks under control, so that they were not free to keep on lending money, starting people on credits, and issuing credit cards, without any limitation. One such legislation that was passed by the government then, to limit how banks were handling credit, most particularly, was to limits to the fees that could be charged by credit card companies, and these limits had to be informed to the customer, so that they were aware of what was being asked of them.