Which of the Following Implies That Small FI's Are More

question 22

Multiple Choice

Which of the following implies that small FI's are more cost efficient than large FI's, and that in a freely competitive environment for financial services, small FI's may outperform their larger counterparts?

• A)economies of scale
• B)diseconomies of scale
• C)economies of scope
• D)diseconomies of scope

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Definitions:

Assimilation

The cognitive process by which new information is integrated into existing schemas or frameworks, helping individuals to understand and interact with the world around them.

Sensorimotor

Refers to the stage in early childhood development where learning occurs through sensory experiences and manipulating objects.

Preoperational

The second stage in Piaget's theory of cognitive development, marked by the emergence of symbolic thought but lacking in the understanding of logic or operations.

Concrete Operational

A stage in Piaget's theory of cognitive development, typically occurring between ages 7 and 12, where children gain the ability to think logically about concrete objects and events.