There Is an Important Debate Raging Today Regarding Whether Banks

question 89

Multiple Choice

There is an important debate raging today regarding whether banks should be regulated at all.George Benston contends that:

• A)firms in regulated industries actually seek out regulations because they bring monopolistic rents.
• B)regulations shelter firms from changes in demand and cost,lowering its risk.
• C)regulations can increase consumer confidence which increases customer loyalty to regulated firms.
• D)depository institutions should be regulated no differently than any other corporation with no subsidies or special privileges.
• E)None of the above options are correct.

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Definitions:

Unity

The state of being united or joined as a whole, often used in the context of teamwork or cohesion within a group.

Cultural Diversity

The existence of a variety of cultural or ethnic groups within a society.

Modest Expectations

Reasonable and not overly ambitious hopes or goals.

Standards of Performance

Benchmarks or criteria used to evaluate the effectiveness or quality of work.