Many workers hold large amounts of stock issued by the firms at which they work. True or False: A person might not want to hold stock in the company where she works because she should diversify her holdings to reduce her overall risk.

Which of the following makes a true statement about the relationship between government and financial institutions? government and financial institutions do not interact with each other. financial institutions like the u.s. treasury must approve increases in the government deficit. government can pass laws to limit what financial institutions can charge in interest and fees. financial institutions like local banks must approve interest rates set by the federal reserve.