An Example of Economies of Scale in the Provision of Financial

question 78

Multiple Choice

An example of economies of scale in the provision of financial services is

• A) investing in a diversified collection of assets.
• B) providing depositors with a variety of savings certificates.
• C) spreading the cost of borrowed funds over many customers.
• D) spreading the cost of writing a standardized contract over many borrowers.

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Definitions:

Built-In Fear

An innate or instinctive fear response, often to specific stimuli, that is considered to be a survival mechanism passed down through evolution.

Autonomic Arousal

Autonomic arousal refers to the activation of the autonomic nervous system, affecting physiological states such as heart rate and sweating in response to stimuli.

Cognitive Interpretation

The process of making sense of perceptions, sensations, and experiences through mental processing, often involving assigning meaning and integrating new information with existing knowledge.

Adaptive Value

The extent to which a trait or behavior increases the chances of survival and reproduction of an organism within its environment.