3) ABC bank has many branches; XYZ bank has relatively few branches. Both banks are the same size - $100 billion in assets - and operate in a five state region. Compare/contrast likely differences in the expenses incurred by ABC relative to XYZ.

4) a) What are the reasons for consolidation of the financial services industry? b) When a low-risk firm combines with a high-risk firm, what can we say about the risk of the conglomerate relative to that of the high and low risk firms?