Geographic restrictions on banks
A) reduce their ability to take advantage of economies of scale.
B) raise the costs of their providing risk-sharing, liquidity, and information services.
C) reduce their exposure to credit risk.
D) reduce the amount of local lending they undertake.
A
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List and explain the two phases and two turning points of the business cycle
What will be an ideal response?
Suppose the market supply curve for wheat is shown in the above figure. Calculate the producer surplus when price is $2 per bushel. If legislation mandates that the price be $1 per bushel, what is the resulting loss in producer surplus?
What will be an ideal response?
Refer to Scenario 5.7. Since Natasha is a risk-neutral executive, she would choose
A) A. B) B. C) C. D) D. E) E.
Which of the following was designed to head off panics among market participants and forestall crashes like the ones in October 1929 and October 1987?
a. Program trading b. Circuit breakers c. Derivatives d. Volatility index