The Purpose of Deregulating Banks During the 1980s Was To

question 114

Multiple Choice

The purpose of deregulating banks during the 1980s was to:

• A)eliminate the risk that banks incurred.
• B)allow banks to compete with other financial institutions.
• C)allow U.S.banks to compete with foreign banks.
• D)help consumers earn more interest.
• E)decrease the cost of banking regulation.

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Definitions:

Risky Shift

A phenomenon in which group decisions tend to be more extreme, including taking greater risks, than individual decisions.

Groupthink

A psychological phenomenon where the desire for harmony and conformity within a group leads to irrational or dysfunctional decision-making outcomes.

Social Identity

The aspect of a person's self-identity that comes from their understanding of belonging to certain social groups.

Ingroup Bias

The tendency to favor members of one's own group over those in other groups.