The existence of branch banking in a given state:
A)encourages new banks to be chartered.
B)discourages new banks from being chartered.
C)results in more bank failures than normal.
D)results in lower operating cost per unit of service.
E)None of the options are correct

Question

Quizplus · Accepted Answer

Branch banking can lead to a concentration of banking services, making it difficult for new banks to compete, thus discouraging new banks from being chartered.

The Existence of Branch Banking in a Given State