A Banking Industry with a Large Number of Small Banks

question 31

Multiple Choice

A banking industry with a large number of small banks competing against each other in the market would be described as competitive. This type of market structure would

• A)encourage behavior beneficial to consumers.
• B)be characterized by inefficiencies and fewer benefits for the public.
• C)increase the likelihood of an individual bank failure because of the increased level of competition.
• D)Both a and c are correct.

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Definitions:

False Beliefs

Erroneous convictions or understandings that an individual holds, despite contradictory evidence or logic.

Hurt

A sensation of physical pain or emotional distress.

Social Withdrawal

The process of removing oneself from social interactions and activities, often due to anxiety, depression, or other mental health issues.

Negative Symptom

Negative symptoms are characterized by deficits or decreases in normal emotional responses or thought processes, often seen in conditions like schizophrenia.