A merger may increase a bank's expected future earnings or reduce its level of risk exposure by:

Question

Quizplus · Accepted Answer

All of the options (A, B, C, and D) are correct. Improved operating efficiency can result from the combined resources and expertise of both banks, leading to cost savings and increased profitability. Increased earnings per share can result from the increased size and market presence of the merged bank. Geographic or product diversification can reduce the merged bank's risk exposure by spreading its operations across multiple regions or industries. Product diversification can also reduce risk by expanding the bank's offerings and revenue streams.

A Merger May Increase a Bank's Expected Future Earnings or Reduce