stephany1482 stephany1482

21-06-2022
Business

contestada

Regulating banks and savings and loans differently (specifically limiting the amount of interest that a savings and loan can offer to potential savers) causes:

a: banks to have a competitive disadvantage

b: savings and loans to have a competitive advantage.

c: savings and loans to be equally competitive

d: savings and loans to have a competitive disadvantage

e: banks close

Respuesta :

ewomazinoade ewomazinoade

04-07-2022

Regulating banks and savings and loans differently causes savings and loans to have a competitive disadvantage

What is the effect of the difference in regulation?

When banks and savings and loans have different regulation, the party with the stricter regulation has a competitive disadvantage while the party with the less strict regulation has a competitive advantage.

Limiting the amount of interest that a savings and loan can offer to potential savers would lead to savers preferring the which can offer higher interests.

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