According to the Textbook,large Banks Possess Some Potential Advantages Over

question 46

Multiple Choice

According to the textbook,large banks possess some potential advantages over small and medium-size banks.Which of the following is not such an advantage?

• A)Greater diversification,geographically and by product line
• B)Availability of financial capital at lower cost
• C)Greater professional expertise to allocate capital to the most promising products and services
• D)Better positioned to take advantage of the opportunities afforded by interstate banking
• E)All the options are advantages typically possessed by large banks

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Definitions:

Oligopoly

A market structure characterized by a small number of firms that have significant market power, leading to limited competition.

Price Fixing

An illegal practice where businesses collude to set prices at a certain level, rather than allowing market forces to determine them.

Microsoft

A multinational corporation that specializes in the development, manufacturing, licensing, support, and sales of computer software, consumer electronics, and personal computers and services.

Antitrust Policy

Regulations and laws that encourage competition by limiting monopolies, preventing mergers that would restrict competition, and other business practices that would reduce consumer welfare.