Identify a condition under which conflicts of interest are exploitable.
A)Market for bank service is very competitive.
B)Banks have monopoly power over their customers.
C)Information flows between the customer and the bank are symmetric.
D)Bank does not possess any information advantage over its customers.
E)Bank places a relatively high value on its reputation.

Question

Quizplus · Accepted Answer

When banks have monopoly power over their customers, conflicts of interest can be exploitable as customers have limited options and the bank can use its power to prioritize its own interests over the customers' interests.

Identify a Condition Under Which Conflicts of Interest Are Exploitable