Which of the following was an important consequence of the regulatory reforms that followed the deposit insurance crisis of the 1980s and early 1990s?
A)An unprecedented consolidation of the U.S. banking industry
B)A series of bank panics
C)Unprecedentedly high interest rates
D)New restrictions on interstate banking

Question

Quizplus · Accepted Answer

The regulatory reforms that followed the deposit insurance crisis of the 1980s and early 1990s led to an unprecedented consolidation of the U.S. banking industry, with many smaller banks being acquired by larger ones. This was due to stricter regulatory requirements and the increased costs of compliance, which made it more difficult for smaller banks to remain competitive. Therefore, this option is the most appropriate consequence of the regulatory reforms. The other options are not applicable or do not correctly represent the impact of the regulatory reforms.

Which of the Following Was an Important Consequence of the Regulatory