Which of the following is characteristic of a banking system composed of a small number of large banks?

Question

Quizplus · Accepted Answer

A banking system composed of a small number of large banks is likely to have a low number of bank failures due to the banks' size and stability. Option A is incorrect because with a small number of large banks, there may not be fierce price competition. Option B is incorrect because the small number of large banks may not compete vigorously, leading to higher costs.

Which of the Following Is Characteristic of a Banking System