When Financial Institutions Are Able to Reduce the Costs of Information

question 15

Multiple Choice

When financial institutions are able to reduce the costs of information for each service they offer by applying the same information source to each service,we say that the financial institution is realizing

• A)economies of scope.
• B)economies of scale.
• C)increasing returns.
• D)diminishing marginal returns.

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Definitions:

Negotiating Tool

A method or resource employed during negotiations to persuade or influence the outcome in one's favor.

New Media Forms

Emerging or contemporary types of media that utilize digital technology to deliver content, including social media, websites, digital art, and virtual reality experiences.

Power Vacuum

A situation that occurs when someone has lost control of something and no one has replaced them, creating a state of general disorder or confusion.

Manager

An individual responsible for controlling or administering an organization or group of staff, planning and directing their functions and activities.