Question: a. In a competitive banking system, what tends to happen to banks that make low-interest rate loans to the bankers friends: Do they tend to

a. In a competitive banking system, what tends to happen to banks that make low-interest rate loans to the banker’s friends: Do they tend to be more successful or less successful than other, more ruthless banks?
b. Given your answer to the previous question, how do you suspect that politicized government owned banks stay in business?

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