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:

Adapting

The process of making changes in order to cope with new situations or environments.

Party's Approach

This term describes the strategy or method adopted by an individual or group in negotiations, discussions, or in addressing issues.

High Familiarity

A situation or condition where parties involved have a deep understanding or knowledge of each other, which can influence the dynamics of interactions or negotiations.

Power Distance

A cultural dimension that describes the extent to which less powerful members of institutions and organizations within a country expect and accept that power is distributed unequally.