The presence of so many commercial banks in the United States is most likely the result of
A. consumers' strong desire for dealing with only local banks.
B. adverse selection and moral hazard problems that give local banks a competitive advantage over larger banks.
C. prior regulations that restricted the ability of these financial institutions to open branches.
D. consumers' preference for state banks.
Answer:C
The presence of so many commercial banks in the United States is most likely the result of
A. consumers' strong desire for dealing with only local banks. B. adverse selection and moral hazard problems that give local banks a competitive advantage over larger banks. C. prior regulations that restricted the ability of these financial institutions to open branches. D. consumers' preference for state banks.