An Example of Economies of Scale in the Provision of Financial

question 83

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)hiring more support staff so that customers don't have to wait so long for assistance.
• D)spreading the cost of writing a standardized contract over many borrowers.

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Definitions:

Civil Law

Civil law is a legal system originating in Europe, characterized by comprehensive statutes and codes that lay out legal rules, eschewing much of the common law's tradition of judge-made precedent.

Plea Bargain

A legal agreement where an accused agrees to plead guilty to a lesser charge in exchange for a lighter sentence.

Misdemeanor

A criminal offense considered less severe than a felony, typically punishable by fines, community service, or imprisonment for less than one year.

Mediation

A form of alternative dispute resolution where a neutral third party helps disputing parties to come to a mutually acceptable agreement.