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Interest Rate Risk Is Probably Greatest at Which of the Following

question 55

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Interest rate risk is probably greatest at which of the following intermediaries?


Definitions:

Returns To Scale

The change in output resulting from a proportional change in all inputs in the production process; can be increasing, constant, or decreasing.

Increasing Returns To Scale

See Economies of scale.

Economies Of Scale

Exist when average costs fall as output increases.

Diseconomies Of Scale

Exist when average costs rise with output.

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