Which of the Following Contributed to Falling Profits for Banks

question 22

Multiple Choice

Which of the following contributed to falling profits for banks in the 1970s and early 1980s?

• A) regulatory forbearance
• B) high inflation
• C) low capital levels
• D) all of the above

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Definitions:

Supply

The total amount of a product or service that is available for consumers.

Demand

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

Competitive Market

A market structure characterized by a large number of buyers and sellers, homogeneous products, and ease of entry and exit, which leads to price tending towards marginal cost.

Supply And Demand

The economic model that determines the price of anything in a market, based on the quantity available and the desire of consumers for it.