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.

Question

Quizplus · Accepted Answer

Conflict of interest issues arise when employees have access to insider information and may use it to benefit themselves or others, potentially at the expense of customers or the institution itself. Product segmentation can help mitigate this risk by limiting access to confidential information only to employees who require it to perform their job duties.

Concern About the Improper Transfer of Inside Information Has Been