A Bank Can Usually Offer a Saver a Higher Return

question 20

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:

Confederate States

refers to the 11 southern states that seceded from the Union in 1860-1861, leading to the American Civil War.

Reconstruction

Refers to the period following the Civil War in which the United States government focused on rebuilding the Southern states and reintegrating them into the Union.

Post-Civil War

Refers to the period immediately following the end of the American Civil War, marked by reconstruction efforts, societal changes, and attempts to integrate formerly enslaved people into society.