The primary reason for the recent reduction in the number of banks is
A)bank failures.
B)re-regulation of banking.
C)restrictions on interstate branching.
D)bank consolidation.

Question

Quizplus · Accepted Answer

Bank consolidation, through mergers and acquisitions, has been the primary reason for the reduction in the number of banks. As larger banks become more dominant in the industry, smaller regional and community banks have been absorbed into them, leading to a decrease in the total number of banks. While there have been some bank failures in recent years, they have not been the main reason for the overall decline in the number of banks. Re-regulation of banking and restrictions on interstate branching may have had some impact on the industry, but they are not the primary drivers of bank consolidation.

The Primary Reason for the Recent Reduction in the Number