The primary reason for the recent reduction in the number of financial institutions is ________.
A) financial failures
B) re-regulation of banking
C) restrictions on branching
D) financial consolidation

Question

Quizplus · Accepted Answer

Financial consolidation, through mergers and acquisitions, has been the primary reason for the recent reduction in the number of financial institutions. This trend has been driven by a desire to increase efficiency, reduce costs, and improve competitiveness in the industry. While there have been financial failures and re-regulation of banking, these factors are not the primary drivers of consolidation. Similarly, restrictions on branching may have played a role in the past, but they are not as relevant in today's banking environment.

The Primary Reason for the Recent Reduction in the Number