1) Explain the role the government plays in personal finance (focus on regulations, laws, economic policy, etc.). 2) Explain the role of government assistance in personal finance (describe what type...

Solution:-
1) Explain the role the government plays in personal finance (focus on regulations, laws,
economic policy, etc.).
Government plays significant role in personal finance by updating and introducing new policies,
laws and regulations. Government has control over the percentage return and the safety which a
person might get by investing or lending its funds. Federal bank lends the funds to the
commercial banks which in turn lends the money to the common public and this whole process
helps in determining the return which depositors will get by investing in commercial banks. By
changing its policies government can instruct the federal bank to change its lending rates which
in turn will affect the interest rate which depositors get and also the rate of interest people are
supposed to pay on amount borrowed by them.
2) Explain the role of government assistance in personal finance (describe what type of
assistance is available).
Government passes various laws and issues various regulations to provide assistance to the
general public. Government provides various types of benefits and subsidies for the people of
lower income group by offering lower rate of tax which will increase the disposable income with
lower income people and more disposable income means more investment and higher financial
security for lower income people.
3) Explain the impact of the tax system on personal finance (how do various taxes impact...