Banks Responded to Disintermediation by

question 46

Multiple Choice

Banks responded to disintermediation by

• A)supporting the elimination of interest rate regulations,enabling them to better compete for funds.
• B)opposing the elimination of interest rate regulations,as this would increase their cost of funds.
• C)demanding that interest rate regulations be imposed on money market mutual funds.
• D)supporting the elimination of interest rate regulations,as this would reduce their cost of funds.

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Definitions:

Ethical Problems

Moral dilemmas or issues arising in a situation where a decision about right and wrong must be made.

Personal Conscience

An individual's internal sense of right and wrong that guides their behavior and moral decisions.

Social Norms

Unwritten rules that govern the behavior of individuals within a society or group.

Ethical Universalism

The philosophical view that certain ethical standards are universally applicable to all individuals, regardless of culture, race, sex, religion, nationality, sexuality, or any other distinguishing feature.