In the Absence of Regulation,banks Would Probably Hold

question 94

Multiple Choice

In the absence of regulation,banks would probably hold

• A) too much capital, reducing the efficiency of the payments system.
• B) too much capital, reducing the profitability of banks.
• C) too little capital, increasing the return on equity.
• D) none of the above.

---

Definitions:

Service Sector

Refers to the segment of the economy that provides services rather than producing goods, including industries like retail, healthcare, and finance.

Labour-intensive

Describing industries or processes that require a large amount of manual labor compared to the amount of capital.

Automate

the process of using technology to perform tasks with minimal human intervention, improving efficiency and accuracy.

Intellectual Task

A task that requires cognitive skills and mental effort, involving thinking, problem-solving, and decision-making.