_____ Were Originally Set Up to Encourage Personal Savings and Provide

question 103

Multiple Choice

_____ were originally set up to encourage personal savings and provide mortgages to local home buyers.

• A)Commercial banks
• B)Savings banks
• C)Credit unions
• D)Brokerage firms

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Definitions:

Barriers to Entry

Obstacles that prevent new competitors from easily entering an industry or area of business.

Monopolistic Competition

A market structure where many companies sell products that are similar but not identical, allowing them to compete on factors other than price.

Imperfect Competition

Imperfect competition describes a market structure where the conditions necessary for perfect competition are not met, leading to firms having some control over market prices.

Monopoly

A market structure characterized by a single seller who has exclusive control over a product or service, potentially leading to higher prices and reduced quality.