Consider two countries with the following characteristics. Country Yin has no restrictions on bank branching and banks in Country Yin are permitted to offer investment and insurance products along with traditional banking services. In Country Yang, there are strict limits on branch banking and on the geographical spread of a bank's business. In addition, banks in Country Yang are not permitted to offer investment or insurance services. a. In which country do you think the banking system is more concentrated? O Country Yin O Country Yang b. In which country do you think the banking system is more competitive? O Country Yin O Country Yang c. In which country do you think, everything else being equal, banking products are cheaper? O Country Yin O Country Yang

Consider two countries with the following characteristics. Country Yin has no restrictions on bank branching and banks in Country Yin are permitted to offer investment and insurance products along with traditional banking services. In Country Yang, there are strict limits on branch banking and on the geographical spread of a bank's business. In addition, banks in Country Yang are not permitted to offer investment or insurance services. a. In which country do you think the banking system is more concentrated? O Country Yin O Country Yang b. In which country do you think the banking system is more competitive? O Country Yin O Country Yang c. In which country do you think, everything else being equal, banking products are cheaper? O Country Yin O Country Yang

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter12: Money, Banking And The Financial System

Section: Chapter Questions

Problem 15QP

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