The U.S. financial system consists of a handful of mega banks and a competitive fringe of smaller banks. Which of the following best describes how we arrived at this industry structure?
A. Due to economies of scale and scope, it is efficient for banks to grow large and offer many products across multiple business lines.
B. Larger banks are less likely to be bailed out by the government.
C. Due to diseconomies of scale and scope, it is inefficient for banks togrow large and offer many products across multiple business lines.
D. Larger banks are subject to less government regulation and supervision.