[Solved] Consider the following statements regarding bank mergers: Statement 1: Bank mergers aim to create stronger and more stable banks. Statement 2:... Which of the above statements is/are correct? | Banking Awareness

Banking Awareness - Banking Acts, Reforms & Risk Management

Consider the following statements regarding bank mergers: Statement 1: Bank mergers aim to create stronger and more stable banks. Statement 2: Bank mergers help improve operational efficiency. Which of the above statements is/are correct?

AOnly Statement 2 is correct

BBoth Statement 1 and Statement 2 are correct

CNeither Statement 1 nor Statement 2 is correct

DOnly Statement 1 is correct

Step-by-Step Solution

Step 1: Check Statement 1
Mergers strengthen banks through scale and capital.
Step 2: Check Statement 2
Mergers improve efficiency by reducing duplication.
Final Answer:
Both Statement 1 and Statement 2 are correct → Option B
Quick Check:
Scale + efficiency = merger objective ✅

Quick Trick: Mergers = strength + efficiency.

Common Mistakes:

MISTAKES

Thinking mergers have only political motives.

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Which of the above statements is/are correct?

Step 1: Check Statement 1

Step 2: Check Statement 2

Final Answer:

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