Question

According to the lecture and the lecture notes, the number of large banks in the U.S. had _______ after the Dodd-Frank Act.

a) decreased
b) increased
c) remained the same

Answer 1

After the Dodd-Frank Act, the number of large banks in the U.S. decreased due to the regulations which encouraged consolidation within the banking industry.

Step-by-step explanation:

According to the lecture and lecture notes, the number of large banks in the U.S. had decreased after the Dodd-Frank Act. The Dodd-Frank Wall Street Reform and Consumer Protection Act was enacted in response to the 2008 financial crisis with the intent to decrease various risks in the U.S. financial system. One consequence of the regulations, which among other things increased oversight and capital requirements for banks, led to a consolidation in the banking industry, resulting in fewer but larger institutions.