Bank Consolidation and Nationwide Banking

1) The primary reason for the recent reduction in the number of banks is

A) bank failures.

B) re regulation of banking.

C) restrictions on interstate branching.

D) mergers and acquisitions.

2) Bank holding companies that rival money center banks in size, but are not located in money center cities are

A) superregional banks.

B) bank clearing houses.

C) international banks.

D) local banks.

3) The ability to use one resource to provide different products and services is

A) economies of scale.

B) economies of scope.

C) diversification.

D) vertical integration.

4) The business term for economies of scope is

A) economies of scale.

B) diversification.

C) cooperation.

D) synergies.