One Consequence of the Close Relationship Between Banks and Industry

question 7

Multiple Choice

One consequence of the close relationship between banks and industry in Germany is that

• A)German industry is inefficient because it has been able to obtain credit so easily.
• B)German banks are much more likely to fail than are U.S. banks.
• C)German securities markets are less well developed than U.S. securities markets.
• D)there are many more banks in Germany than in the United States.

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Definitions:

Yen

The official currency of Japan, symbolized as ¥ and widely recognized in international financial markets.

Demand

The quantity of a product or service that consumers are willing and able to purchase at various prices during a given period.

British Pound

The currency of the United Kingdom, often symbolized as £ and known officially as the pound sterling.

Economic Boom

A period of significant economic growth, expansion, and prosperity.