The commercial banking industry in canada is less

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(7)“The commercial banking industry in Canada is less competitive than thecommercial banking industry in the United States because in Canada only a fewlarge banks dominate the industry, while in the United States there are around6,500 commercial banks.” Is this statement true or false? Explain your answer.A.True. The reason for the large number of US banks is regulations thatpromote competition such as branching restrictionsB.False. It is not true that the industry is dominated by a few large firms;thus, based on the Herfindahl-Hirschman Index, the banking industry inCanada is just as competitive as in the United StatesC.True. The banking industry is less competitive in Canada than in theUnited States because Canada has a national banking system, i.e., ownedand operated by the governmentD.False. The reason for the large number of US banks is anticompetitiveregulations such as branching restrictions
(8)As a result of strict banking regulations, the United States has:
(9)What are the disadvantages of interstate banking? (Circle all that apply.)

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Term
Spring
Professor
Shefflin
Tags
Economics, Business, Money Markets, Financial Markets, Federal Reserve System

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