1. Economics and Government Regulations
Therefore, the government has to protect these firms when they face difficulty. Government protection includes facilitating a merger, providing credits, and injecting money. ... Hence, the government still had to enact policies to protect those banks. ... Many businesses deposit in repos (repurchase agreement), which is not protected and regulated by the government. ... Their dividends pay a huge amount of money – 40 billion each quarter – to the Government treasury. ...
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