Question

Government regulations on credit aim to

Answer 1

B- Help borrowers pay on time

Answer 2

Credit regulation is an instrument available to the government to ensure the proper environment for the development of business and the economy and to avoid crises in the credit market.

Regulation in the credit market can prevent financial institutions from lending more resources than they can afford in the event of default on customers, thus avoiding a credit crisis that can take on greater proportions. That is, financial regulation can have a pedagogical character for financial institutions that take high risks when lending their resources. Regulations may require, for example, that institutions raise borrowing requirements for borrowers.

Thus, the correct answer is (D).