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Select All Correct answers Question 1 2.5 pts Regulations that will make large banks easier to break up, separating their retail (deposits and lending) business

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Select All Correct answers

Question 1 2.5 pts Regulations that will make large banks easier to break up, separating their retail (deposits and lending) business from their wholesale investment banking) operations, are likely to: Make the banks less able to use cheap retail deposits to fund their securities trading business and take too many risks. End or mitigate implicit taxpayer subsidies that supports banks that are too big to fail (TBTF). Benefit the banks' retail clients, e.g. through lower account fees and higher deposit rates since banks will be more profitable and safer. U Increase the cost of financial intermediation, especially if large banks relied solely on TBTF advantages to exploit economies of scale. None of the answers

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