In the absence of regulation, banks would probably hold   Question 20 options:   a)  too little capital.   b)  too much capital, reducing the profitability of banks.   c)  too much capital, reducing the efficiency of the payments system.   d)  too much capital, making it more difficult to obtain loans.

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter28: Monetary Policy And Bank Regulation
Section: Chapter Questions
Problem 15RQ: In government programs of bank supervision, what is being supervised?
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20.

In the absence of regulation, banks would probably hold

 

Question 20 options:

 

a) 

too little capital.

 

b) 

too much capital, reducing the profitability of banks.

 

c) 

too much capital, reducing the efficiency of the payments system.

 

d) 

too much capital, making it more difficult to obtain loans.

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