Arizona Constitution Practice Test

Which governing body may make loans to individuals, corporations, or associations?

1. Executive branch

2. Judicial branch

3. House of Representatives

4. No government agency

The correct answer is: No government agency

The correct choice indicates that no government agency is authorized to make loans to individuals, corporations, or associations. In the context of the Arizona Constitution and the structure of state governance, government bodies typically have specific roles defined by law. The executive branch is primarily responsible for enforcing laws and managing the functions of state government, while the judicial branch interprets and applies the law through the court system. The House of Representatives, as part of the legislative branch, is responsible for creating laws rather than functioning as a lending institution. Since these branches do not have the mandate to provide loans, the answer aligns with the understanding that governmental entities do not engage directly in financial lending operations typical of financial institutions. Thus, it underscores the principle that government is not a bank but rather serves regulatory and administrative functions.