Which of the Following Was an Important Consequence of the Regulatory

question 7

Multiple Choice

Which of the following was an important consequence of the regulatory reforms that followed the deposit insurance crisis of the 1980s and early 1990s?

• A)An unprecedented consolidation of the U.S. banking industry
• B)A series of bank panics
• C)Unprecedentedly high interest rates
• D)New restrictions on interstate banking

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Definitions:

Price Inelastic

Describes a situation where the quantity demanded or supplied of a good or service changes by a smaller percentage than the percentage change in price.

Cross Elasticity

A measure of how the quantity demanded of one good responds to a change in the price of another good.

Substitute Goods

Products or services that can be used in place of each other. When the price of one falls, the demand for the other product falls; conversely, when the price of one product rises, the demand for the other product rises.

Cross Elasticity

A measure of how the quantity demanded of one good responds to a change in the price of another good, indicating the degree of substitutability or complementarity between them.