Concern about the improper transfer of inside information has been used to justify product segmentation on the grounds of
A)safety and soundness issues.
B)economy of scale and scope issues.
C)conflict of interest issues.
D)deposit insurance issues.
E)regulatory oversight issues.

Question

Quizplus · Accepted Answer

Concern about the improper transfer of inside information is related to conflicts of interest, where individuals or entities with access to inside information may use it for personal gain or advantage. Product segmentation can help to reduce the potential for conflicts of interest by separating different types of products and services and restricting information flow between them.

Concern About the Improper Transfer of Inside Information Has Been