Why does the government take an active role in the regulation of the U.S. financial system?
A) Commercial banks are essential in paying for international trade.
B) To generate fees in addition to those paid to the FDIC.
C) To help commercial banks dispose of assets.
D) Commercial banks are essential to the creation of money and to the protection of American citizens.
E) To allow commercial banks to settle debt.

Question

Quizplus · Accepted Answer

D)Because commercial banks are essential to the creation of money, the government regulates them to ensure a sound and competitive financial system.

Why Does the Government Take an Active Role in the Regulation