A Bank Can Usually Offer a Saver a Higher Return

question 79

Multiple Choice

A bank can usually offer a saver a higher return for the same risk for all of the following reasons except:

• A) the bank can usually purchase assets at a lower cost than any one saver.
• B) the bank can pool the resources of small savers and purchase higher valued assets.
• C) economies of scale can also be applied by the bank in its purchase of assets.
• D) savers do not have good enough information to know if the return is sufficient.

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Definitions:

Aged

Refers to the later stages of life, often implying a change in societal roles, physical ability, and social perceptions.

Taste-For-Discrimination Model

A theory that views discrimination as a preference for which an employer is willing to pay.

Discriminatory Employers

Employers who unfairly treat employees or potential employees differently based on personal characteristics unrelated to job performance.

Costs

Costs refer to the expenditure incurred by businesses to produce goods or services, including materials, labor, and overhead expenses.