An Example of Economies of Scale in the Provision of Financial

question 78

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) spreading the cost of borrowed funds over many customers.
• D) spreading the cost of writing a standardized contract over many borrowers.

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Definitions:

Schizophrenia

A chronic psychological disorder characterized by a disruption in the connection among thinking, emotion, and action, resulting in incorrect perceptions, unsuitable behaviors and emotions, detachment from reality and personal connections in favor of fantasy and illusion, along with a feeling of psychological disintegration.

Bulimia

A severe eating disorder characterized by episodes of binge eating followed by inappropriate methods of weight control, such as vomiting or excessive exercise.

Behavioral Extreme

Refers to actions or behaviors that are significantly outside the norm, either in intensity, frequency, or type.

Dopamine Synapses

Connections between neurons where dopamine, a neurotransmitter, is released, affecting mood, motivation, and movement.