With no government regulation, how much bank capitals would banks hold? A. Too much capital, reducing the profitability of banks. B. Too much capital, making it more difficult to obtain loans. C. Too little capital, reducing the profitability of banks. D. Too little capital, making it more likely to fail.

Business/Professional Ethics Directors/Executives/Acct
8th Edition
ISBN:9781337485913
Author:BROOKS
Publisher:BROOKS
Chapter2: Ethics & Governance Scandals
Section: Chapter Questions
Problem 6.2EC
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With no government regulation, how much bank capitals would banks hold?

A. Too much capital, reducing the profitability of banks.

B. Too much capital, making it more difficult to obtain loans.

C. Too little capital, reducing the profitability of banks.

D. Too little capital, making it more likely to fail. 

 

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