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From a policy perspective, bank mergers are mainly considered a tool for:

hard Q9 of 15
Banking Awareness - Banking Acts, Reforms & Risk Management
From a policy perspective, bank mergers are mainly considered a tool for:
AShort-term profit maximisation
BReducing financial inclusion
CStrengthening the banking system
DPrivatising public sector banks
Step-by-Step Solution

  1. Step 1: Identify policy intent

    Mergers are long-term structural reforms.

  2. Step 2: Select the correct purpose

    System-wide strength is the main aim.

  3. Final Answer:

    Strengthening the banking system → Option C

  4. Quick Check:

    System strength over short-term gains ✅
Quick Trick: Policy focus = long-term system health.
Common Mistakes:
MISTAKES
  • Viewing mergers only from profit angle.
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