Mergers after the financial crisis of 2008 were driven by which of the following factors?
A) High interest rates
B) Large cash positions
C) Less global competition
D) High price earnings ratios

Question

Quizplus · Accepted Answer

One of the major factors that drove mergers after the financial crisis of 2008 was large cash positions held by many companies. Banks and other firms had significant amounts of cash on their balance sheets but faced challenges in deploying them in a low-interest-rate environment, making mergers an attractive option for utilizing excess cash. The other choices (A, C, and D) are not accurate as high-interest rates were not prevalent during this period, global competition remained robust, and price earnings ratios were generally low due to the economic downturn.

Mergers After the Financial Crisis of 2008 Were Driven by Which