According to Studies, Which of the Following May Better Explain

question 19

Multiple Choice

According to studies, which of the following may better explain cost differences and operating cost efficiencies among FIs?

• A)Diseconomies of scale.
• B)Economies of scale.
• C)Economies of scope.
• D)X-inefficiencies.
• E)Diseconomies of scope.

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Definitions:

Increased Taxes

A financial situation where a government raises the rates of taxes, affecting individuals or businesses.

Reduced Government Spending

A situation where the government decreases its expenditure in various sectors to manage its budget, often affecting public services and investments.

Expansionary Monetary Policy

Government actions to increase the money supply in an effort to cut the cost of borrowing, which encourages business decision makers to make new investments, in turn stimulating employment and economic growth.

Money Supply

The total amount of monetary assets available in an economy at a specific time.