Which of the Following Is Characteristic of a Banking System

question 79

Multiple Choice

Which of the following is characteristic of a banking system composed of a large number of small banks?

• A)The safety and soundness of the banking system would not be threatened with a few bank failures.
• B)Competition would be discouraged.
• C)Individual banks have a smaller risk of failure.
• D)The industry would be highly non-competitive

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Definitions:

Founder Syndrome

A condition in which a single individual, typically the founder of an organization, exercises disproportionate influence, often to the detriment of the organization's health and sustainability.

Organization

A structured group of people with a specific purpose, such as a business, government body, charity, or club.

Management Practices

Methods or protocols employed in directing and controlling an organization, aimed at achieving objectives efficiently and effectively.

Chief Executive

The highest-ranking officer in an organization, typically responsible for making major corporate decisions.