The economic value of narrowly defined bank franchises has declined because
A)product line restrictions inhibit the ability of an FI to optimize the set of financial services it can offer.
B)product restrictions limit the ability of FI managers to adjust to shifts in the demand for financial products.
C)product restrictions limit the ability of FI managers to adjust to shifts in costs due to technology and related innovations.
D)All of the options.
E)None of the options.

Question

Quizplus · Accepted Answer

Narrowly defined bank franchises have limitations on the types of financial products they can offer. This restricts the ability of managers to adjust to shifts in demand and costs due to technological advancements. Therefore, all the options are true, leading to a decline in the economic value of narrowly defined bank franchises.

The Economic Value of Narrowly Defined Bank Franchises Has Declined