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The Dodd-Frank Act passed by Congress after the last recession was intended to reduce some of the moral hazard problems discussed in Chapter 10 by placing more restrictions on the banks. Part of this...

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The Dodd-Frank Act passed by Congress after the last recession was intended to reduce some of the moral hazard problems discussed in Chapter 10 by placing more restrictions on the banks. Part of this act was recently eased by Congress, but this revision was largely focused on the rules that apply to the largest banks. The main restrictions of Dodd-Frank are still in place, and some banking experts argue that the banks have to make money in other ways, and they would likely raise their fees for other services (e.g., monthly service fees, ATM access fees, and non-sufficient fund fees). One key problem with higher banking fees is that they tend to be paid by bank customers with lower income or wealth.

In the past ten years, our access to banking services has changed due to electronic alternatives like Apple Pay or Venmo. So, if banks have raised fees due to Dodd-Frank, we now may be able to avoid the fees by using electronic alternatives to traditional banking services.Do you pay much attention to bank service fees? Do increases in these fees cause you to change your banking behavior? Would you simply switch to an electronic alternative?

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Answered Same Day Jun 07, 2021

Solution

Sudipta answered on Jun 08 2021
137 Votes
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As per the study, it can be identified that due to application of Dodd-Frank Act large banking groups went into some restriction (Scholes, 2010). During this scenario, management team of banking groups decided to maintain high banking charges to maintain their revenue. Now If you ask if I really pay attention about banking charges or not, to be honest I do. I think most of the people do not bother about high banking charges until and unless the service gets inte
upted however, I do concern about banking charges all the time.
Changes or increasing banking fees did approached me in changing my banking behavior. Earlier I used to do more transactions on cash. However, my bank has set two different charges for withdrawing cash. One charge is based on limit, for example, bank has set a withdrawal monthly limit. Hence, if I cross the monthly withdrawal limit then I need to pay extra charges to the bank. On the other side, another charge has been introduced that...
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