Deregulation Refers to the Rules Placed on Banks to Reduce

question 48

True/False

Deregulation refers to the rules placed on banks to reduce the risks involved in lending.

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Definitions:

Corporate Tax Rate

The percentage of a corporation's profits that is paid as tax to the government.

Fixed Costs

Costs that do not change with the level of output or sales, such as rent or salaries.

Variable Costs

Costs that change in proportion to the level of production or business activity, such as materials and labor expenses.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating a company's fixed versus variable costs ratio.