An innovation that blurred the distinction between brokerage firms and commercial banks was Merrill Lynch's development in 1977 of the

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The cash management account developed by Merrill Lynch in 1977 allowed clients to have a single account that combined the features of both a brokerage account and a traditional bank checking account. This innovation allowed customers to easily manage their investment and banking needs in one place, blurring the lines between traditional brokerage firms and commercial banks. The other options listed (money market mutual funds, individual retirement accounts, and discount brokerages) did not have as significant an impact on blurring the distinction between brokerage firms and commercial banks.

An Innovation That Blurred the Distinction Between Brokerage Firms and Commercial