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The Major Reasons for the Shift in the Composition of Bank

Question 38

Multiple Choice

The major reasons for the shift in the composition of bank lending commitments from the retail market to the commercial market are the:


A) introduction of capital adequacy regulations in 1989
B) number of non-bank depository institutions that gained banking licences in the early 1990s
C) fact that commercial loans paid higher returns than housing loans
D) None of the listed options are correct as the shift was from commercial loans to housing loans.

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