Prioritizing social service over profits

Steps:

• Recognize that operating loss-making branches incurs financial costs without revenue gains.
• Evaluate objectives: growth seeks expansion but avoids sustained losses; efficiency and profit maximization eliminate unprofitable units.
• Identify social welfare as the goal where banks serve public needs, like access in underserved areas, despite losses.
• Conclude the bank accepts losses to fulfill broader societal roles.

Why D is correct:

• Social welfare objective requires providing banking access to remote or low-income regions, as defined in public policy for financial inclusion, even if branches operate at a loss.

Why the others are wrong:

• A: Growth aims at expanding market share through profitable or break-even branches, not deliberate losses.
• B: Efficiency maximization involves cutting costs by closing underperforming branches to optimize resources.
• C: Profit maximization demands shutting down loss-making operations to boost overall earnings.

Final answer: D