The Biggest Reason for the Consolidation of the Banking Industry

question 68

Multiple Choice

The biggest reason for the consolidation of the banking industry in the 1980s was

• A) mergers.
• B) bankruptcy.
• C) bailouts.
• D) all of the above.

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Definitions:

Marginal Cost

Marginal cost is the increase or decrease in the total cost of producing one additional unit of a good or service.

Total Revenue

The total amount of money generated by a firm from the sale of its goods or services, calculated before any expenses are subtracted.

Profit Maximizes

Refers to achieving the highest possible profit, where the difference between revenue and costs is at its maximum.

Inefficiency

The lack of optimal use of resources, resulting in lost potential output or increased costs.