With Increased Deregulation in the Banking Sector

question 75

Multiple Choice

With increased deregulation in the banking sector:

• A) the level of risk in the ?nancial services industry has fallen.
• B) the scope of banking has reduced to savings and loans.
• C) the rate of return on ?nancial instruments has fallen.
• D) both risk and rates of return on ?nancial assets have increased.

Know the composition and functions of legal reserves.

Identify and distinguish between the different tools the Federal Reserve uses to control the money supply.

Understand the role of monetary policy in influencing economic conditions.

Recognize the significance of reserve requirements on banking operations.

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Definitions:

Market Scope

Describes the extent and range of products and services a business offers, as well as the geographic and demographic characteristics of the market it aims to serve.

Competitive Advantage

Competitive advantage is the attribute that allows an organization to outperform its rivals, gained through offering greater value to consumers or operating more efficiently.

Strategic Leadership

The ability of influencing others towards the achievement of organizational goals through long-term visioning and by setting a high-level strategic direction.

Corporate Governance

The framework of rules, practices, and processes by which a company is directed and controlled.