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The First State Bank of Wyoming Wants to Acquire the First

Question 98

Multiple Choice

The First State Bank of Wyoming wants to acquire the First State Bank of Oklahoma.The management of the bank feels that this will increase earnings as new markets will be exploited and new services will be offered to all of their bank customers.Which motive for a merger does this most likely reflect?


A) Profit potential
B) Risk reduction
C) Rescue of failing institution
D) Cost savings
E) Maximizing management welfare

Correct Answer:

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