Economies of Scale Enable Financial Institutions to

question 55

Multiple Choice

Economies of scale enable financial institutions to

• A)reduce transactions costs.
• B)avoid the asymmetric information problem.
• C)avoid adverse selection problems.
• D)reduce moral hazard.

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Definitions:

Protostomes

Animals that belong to the Protostomia, one of the major animal clades. Include the annelids, arthropods, and mollusks. Compare with deuterostomes.

Deuterostomes

A major group of animals characterized by their embryonic development, in which the anus forms before the mouth.

Spiral Cleavage

A distinctive spiral pattern of blastomere production in an early protostome embryo. Compare with radial cleavage.

Coelom

The main body cavity of most animals; a true coelom is lined with mesoderm. Compare with pseudocoelom.