If a particular bank regularly announces changes in its interest rate schedules before its competitors, who then set rates very close to those announced by that bank, this could be described as
A) markup pricing.
B) predatory pricing.
C) price leadership.
D) explicit price collusion.

Question

Quizplus · Accepted Answer

This scenario is an example of price leadership, where one firm (in this case, the bank) sets the standard for pricing that is followed by competitors. It is not an example of markup pricing, predatory pricing, or explicit price collusion.

If a Particular Bank Regularly Announces Changes in Its Interest