A Bank Can Usually Offer a Saver a Higher Return

question 79

Multiple Choice

A bank can usually offer a saver a higher return for the same risk for all of the following reasons except:

• A) the bank can usually purchase assets at a lower cost than any one saver.
• B) the bank can pool the resources of small savers and purchase higher valued assets.
• C) economies of scale can also be applied by the bank in its purchase of assets.
• D) savers do not have good enough information to know if the return is sufficient.

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Definitions:

Northwest Indians

Indigenous peoples originally living in the northwestern region of North America, known for their diverse cultures, languages, and historical resistance to European colonization.

Ghost Dance

A spiritual movement that emerged among Native American tribes in the late 19th century, promising the restoration of their lands and way of life through an apocalyptic event.

Federal Government

The national government of a federal country, which holds the authority to govern the nation as a whole, in contrast to state or local governments.

Common Crop

A plant or agricultural product that is widely grown and harvested for food, feed, fuel, and other uses in a particular region or country.