GMAT Verbal Reasoning Practice Test 2

Question : 94 of 101

Marks: +1, -0

Which of the following best completes the passage below?
As long as savings deposits are insured by the government, depositors will have no incentive to evaluate the financial strength of a savings bank. Yield alone will influence their choice of bank. To attract deposits, banks will be forced to offer the highest possible interest rates. And since paying higher rates inevitably strains the financial strength of a bank, ______

the government will be forced to impose limitations on interest rates
deposit insurance will ultimately lead to the financial weakening of many banks
savers will be forced to choose between deposit insurance and higher interest rates
deposits will tend to go to the banks with the greatest financial strength
bank profits will tend to rise to ever-higher levels

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