In the absence of regulation, banks would probably hold Seleccione una: a. too much capital, reducing the profitability of banks. b. too little capital, increasing the return on equity. OC none of these. Ⓒd. too much capital, reducing the efficiency of the payments system.

ECON MACRO
5th Edition
ISBN:9781337000529
Author:William A. McEachern
Publisher:William A. McEachern
Chapter14: Banking And The Money Supply
Section: Chapter Questions
Problem 2.2P
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In the absence of regulation, banks would probably hold
Seleccione una:
Ⓒa. too much capital, reducing the profitability of banks.
b. too little capital, increasing the return on equity.
Oc. none of these.
Od. too much capital, reducing the efficiency of the payments system.
Transcribed Image Text:In the absence of regulation, banks would probably hold Seleccione una: Ⓒa. too much capital, reducing the profitability of banks. b. too little capital, increasing the return on equity. Oc. none of these. Od. too much capital, reducing the efficiency of the payments system.
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