The purpose of deregulating banks during the 1980s was to:
A)eliminate the risk that banks incurred.
B)allow banks to compete with other financial institutions.
C)allow U.S.banks to compete with foreign banks.
D)help consumers earn more interest.
E)decrease the cost of banking regulation.

Question

Quizplus · Accepted Answer

The purpose of deregulating banks during the 1980s was to allow banks to compete with other financial institutions. This led to the creation of new financial products and services, which increased competition and innovation in the banking industry. However, this also led to increased risk-taking by banks, which contributed to the financial crisis of 2008.

The Purpose of Deregulating Banks During the 1980s Was To