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3241004551 [841]
3 years ago
9

How can the U.S. government control financial institution

Social Studies
2 answers:
nordsb [41]3 years ago
4 0

Answer:

passing laws for credit card companies to follow..

Bond [772]3 years ago
3 0

Answer:

The best answer from the answer choices, to the question: How can the U.S. government control financial institutions, would be: Passing laws for credit card companies to follow.

Explanation:

Historically in the United States, seldom has the U.S government exerted too much pressure, or control, over banking, or financial institutions, as in general, it is believed that the system should be self-regulatory. However, this ideal came to an end in two historical landmarks that alerted the government that things needed to be placed under a bit of control: the Great Depression of 1929, and later, the Financial Crisis of 2008, where a lot of financial institutions went bankrupt and the economy almost collapsed. Ever since then, regulatory agencies have been established by the U.S government, most prominent of which is the Federal Reserve and the Federal Open Markets Committee (FOMC), among others. These agencies now have the power to establish regulatory laws that place financial institutions under a framework, and one such banking activity that was placed under regulation was credit cards and the companies who issued them. This is why the last answer is the correct one.

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