Economies of Scope Are Present When a Bank Also Sells

question 84

True/False

Economies of scope are present when a bank also sells insurance and provides brokerage services for stocks and bonds.

---

Definitions:

Recycling

The process of converting waste materials into new products to prevent waste of potentially useful materials.

Risk Management

The process of identifying, assessing, and prioritizing risks followed by coordinated application of resources to minimize or control their impact.

Environmentally Related Activities

Actions or operations by organizations or individuals that have a direct impact on the natural environment.

Trade-Offs

Decisions involving a sacrifice of one goal or value in order to obtain or prioritize another, often in the context of limited resources.