Which of the following completes the argument against deregulation of U.S. banks that began with the phrase: "if banks competed to pay higher rates of interest" O they might also compete to make riskier loans, potentially imperiling the safety of the banking system. ✪ they might also compete to make less riskier loans, potentially imperiling the US consumers' reliance on credit. O they will end up playing a large role in setting the regulations that they will follow. O they will send lobbyists to offer well-paid jobs to some of the retiring members of the regulatory board

Microeconomics
13th Edition
ISBN:9781337617406
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter12: Government And Product Markets: Antitrust And Regulation
Section: Chapter Questions
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Which of the following completes the argument against deregulation of U.S. banks that began with the phrase: "if banks competed to pay higher rates of interest",
O they might also compete to make riskier loans, potentially imperiling the safety of the banking system.
Othey might also compete to make less riskier loans, potentially imperiling the US consumers' reliance on credit.
O they will end up playing a large role in setting the regulations that they will follow.
O they will send lobbyists to offer well-paid jobs to some of the retiring members of the regulatory board
Transcribed Image Text:Which of the following completes the argument against deregulation of U.S. banks that began with the phrase: "if banks competed to pay higher rates of interest", O they might also compete to make riskier loans, potentially imperiling the safety of the banking system. Othey might also compete to make less riskier loans, potentially imperiling the US consumers' reliance on credit. O they will end up playing a large role in setting the regulations that they will follow. O they will send lobbyists to offer well-paid jobs to some of the retiring members of the regulatory board
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