How does competition in financial markets compare to the competition that can be found in product markets?
A) Financial markets are much more competitive.
B) Financial markets are much less competitive.
C) Both markets are similar in competition.
D)Financial markets are not competitive, due to regulation.

Question

Quizplus · Accepted Answer

Financial markets are generally considered to be more competitive than product markets due to lower barriers to entry, the fungibility of financial products, and the global nature of finance which allows for more participants and thus more competition.

How Does Competition in Financial Markets Compare to the Competition