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.

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Definitions:

Equilibrium Price

Equilibrium Price is the market price at which the quantity of goods supplied is equal to the quantity of goods demanded.

Deductible

The dollar sum of (for example, health care) costs that an insured individual must pay before the insurer begins to pay.

Elective Surgical Procedure

A surgery that is planned in advance and is not essential to save life or limb but may enhance the quality of life or physical appearance.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers matches the quantity supplied by producers, leading to a balance in the market.