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",
A) they might also compete to make riskier loans, potentially imperiling the safety of the banking system.
B) they might also compete to make less riskier loans, potentially imperiling the U.S. consumers' reliance on credit.
C) they will end up playing a large role in setting the regulations that they will follow.
D) they will send lobbyists to offer well-paid jobs to some of the retiring members of the regulatory board

Question

Quizplus · Accepted Answer

If banks compete to pay higher rates of interest, they might need to seek higher returns to cover these costs, which could lead them to make riskier loans. This increased risk could threaten the stability of the banking system.

Which of the Following Completes the Argument Against Deregulation of U.S