Economics 9708 · AS & A Level · 7.6

7.6 — practice question

In what kind of market structure are commercial banks usually located?

  • Aperfect competition, because they all link their interest rates to that of the central bank
  • Bperfect competition, because they offer identical products and services
  • Cmonopolistic competition, because a competitive market prevents them making excess profits
  • Doligopoly, because they are affected by the actions of other banks

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