Society pays a price if it restricts the number of bank charters below the number that the private sector normally would generate due to lessened competition.

Question

Quizplus · Accepted Answer

When there is restricted competition in the banking sector due to limitations on the number of bank charters, it can lead to reduced innovation, higher fees, and lower quality of service for consumers. Therefore, society pays a price if the private sector's ability to generate bank charters is restricted.

Society Pays a Price If It Restricts the Number of Bank