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:

Guarding

A reflex contraction of the abdominal muscles, often in response to pain from underlying organs or inflammation.

Prefix

A word, letter, or number placed before another.

Root

The part of a plant that typically lies below the surface of the soil, anchoring the plant and absorbing water and nutrients.

Suffix

An affix placed at the end of words to alter their meaning or create new words.