Considering That, on Average, the Return on Assets Is the Same

question 75

Essay

Considering that, on average, the return on assets is the same for small and large banks, and the return on equity is higher for large banks than small banks, what can be one of the explanations for the trend toward bank mergers?

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Definitions:

Units Produced

The total quantity of items manufactured during a specific period.

Period Costs

Costs that are not tied directly to the production process and are expensed in the period they are incurred, such as selling and administrative expenses.

Product Costs

Costs that are directly linked to the creation of a product, including materials, labor, and overhead.

September

The ninth month of the Gregorian calendar.