If regulators reduce bank failures by imposing regulations that reduce competition, bank efficiency will be increased.

Name: If regulators reduce bank failures by imposing regulations that reduce competition, bank efficiency will be increased.
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Question

Quizplus · Accepted Answer

Imposing regulations that reduce competition may lead to decreased efficiency as banks may not have the incentive to innovate and improve their services. This can ultimately harm consumers in terms of higher costs and reduced access to financial products.

If Regulators Reduce Bank Failures by Imposing Regulations That Reduce