Government regulations on credit aim to


Asked by maham237 @ in Social Studies viewed by 616 People


ensure lenders are repaid.
help borrowers pay on time.
support those borrowing credit.
educate lenders about consumers.

Answered by maham237 @



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).


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