Bank regulation exists because public authorities are convinced that

a. the balance between public interest and safety does not affect profitability, and should be removed from the hands of managers.
b. the balance between bank profitability and public interest cannot be handled with legislation, but can be handled with regulation.
c. the balance between bank profitability and safety cannot be left to profit-maximizing managers.
d. the balance between bank safety and public interest can best be obtained by reliance on the market.


c

Economics

You might also like to view...

Coca Cola and Pepsi, which together account for about 85 percent of the soft drink market, are best described as being in

A) a monopoly market. B) an oligopolistic market. C) a perfectly competitive market. D) a monopolistically competitive market.

Economics

The evidence on the potential for input substitution in the service sector suggests that:

A) there may be more opportunities for input substitution than was previously thought, especially in areas such as health care, financial services, and the even the fine arts. B) the traditional view that the potential for input substitution is extremely limited is correct. C) while one or two areas of the service sector may see a small amount of input substitution, most areas will see little or none. D) input substitution will only be feasible so long as the production process requires a relatively small amount of labor to begin with.

Economics

If a person is taxed $1,000 on an income of $10,000 . taxed $2,000 on an income of $20,000 . and taxed $3,000 on an income of $30,000 . this person is paying a(n):

a. progressive tax. b. regressive tax. c. proportional tax. d. poll tax. e. excise tax.

Economics

In the long-run equilibrium of a market with free entry and exit, marginal firms are operating

a. at the point where average variable cost equals marginal cost. b. at the minimum point on their marginal cost curves. c. at their efficient scale. d. where accounting profit is zero.

Economics