Which of the following is NOT a reason for the increased competition
Between financial institutions?
A) the increased concentration among nonbank institutions
B) all depository institutions are now allowed to offer transactions accounts
C) the expansion of services offered by financial and nonfinancial conglomerates
D) the elimination of deposit rate ceilings

Question

Quizplus · Accepted Answer

The increased concentration among nonbank institutions does not directly lead to increased competition between financial institutions. Instead, it might lead to a more monopolistic or oligopolistic market structure in the nonbank sector. The other options (B, C, and D) directly contribute to increased competition by expanding the range of services and products financial institutions can offer and removing restrictions that previously limited competition.

Which of the Following Is NOT a Reason for the Increased