The sharp reduction in the number of banks that has occurred since the mid-1990s has been due primarily to:
A)bank failures from increased competition.
B)bank mergers.
C)the closing of banks by federal regulators.
D)the revoking of state bank charters.

Question

Quizplus · Accepted Answer

The sharp reduction in the number of banks that has occurred since the mid-1990s has been due primarily to bank mergers. This trend has been incentivized by the desire to reduce costs, increase market share, and provide a wider range of services to customers. Bank failures and closings by federal regulators have played a smaller role in reducing the number of banks. The revoking of state bank charters is also not a major contributor to this trend.

The Sharp Reduction in the Number of Banks That Has