The sharp reduction in the number of banks that has occurred since the mid-1980s has been due primarily to:
A) bank failures from increased competition.
B) bank mergers.
C) the closing of banks by federal regulators.
D) the revoking of state bank charters.

Question

Quizplus · Accepted Answer

The sharp reduction in the number of banks since the mid-1980s has been primarily due to bank mergers. This is evident as many banks have combined to form larger institutions in order to benefit from economies of scale and to better compete in the market. While bank failures, regulatory closures, and revoking of charters have also played a role, they are not the primary reasons for the reduction in bank numbers.

The Sharp Reduction in the Number of Banks That Has