Chapter 4.4, Problem 3R

To determine

The regulations of credit are held by the set of rules of the U.S government.

Explanation of Solution

The U.S. government setting rules for the regulations of credit is because any government in the world would not want the people of their country to pile up the debts they are unable to pay back.

So as to protect the economy and the people, from illegal lending practices, frauds, etc and to make the people aware about the right choice or decision to make, the U.S government has set such rules so that regulating credit can be easy for them and can benefit the economy as a whole.

Economics Concept Introduction

Introduction:

Any government setting rules to regulate the economy with all the efficiency and effectiveness is important for the better working of the economy.