Question: 1.10. 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

1.10.

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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