Most states impose limitations on the authority of the legislature to borrow money, with their objectives being to protect taxpayers and the credit of the state government. A. to borrow money, with their objectives being to protect.
B. to borrow money, the objectives of which are the protecting of
C. to borrow money, limitations intended to protect.
D. for borrowing money, of which the objective is protecting.
E. for borrowing money, limitations with the intent of protecting.

C).  to borrow money, limitations intended to protect.

Explanation:

As per the question, the correct statement to replace the underlined phrase would be 'to borrow...to protect' as it is grammatically appropriate and lexically coherent. The first option is incorrect due to the wrong usage of 'being' which disrupts the flow and meaning of the sentence while the second option inaptly employs '-ing' form of the verb('protecting') after the article 'the.'   Options 'D' and 'E' are the wrong due to grammatical errors like unnecessary usage of 'of which' and 'for borrowing.' Thus, option C is the correct answer.

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