A Financial Institution Can Achieve Cost Savings in Its Credit

question 42

Multiple Choice

A financial institution can achieve cost savings in its credit card operations if it increases the number of cardholders.This is an example of economies of

• A) scope.
• B) scale.
• C) complexity.
• D) information.

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Definitions:

Conditioned Stimulus

A previously neutral stimulus that, after being paired with an unconditioned stimulus, evokes a conditioned response.

Flushing

The process of becoming markedly red in the face and often other areas of the skin, typically as a result of strong emotions, heat, alcohol consumption, or certain medical conditions.

Unconditioned Response

An automatic, reflexive reaction that is elicited by a stimulus without any prior learning or conditioning.

Laid Off

The termination of employment due to the employer's decision often because of economic downturns or company restructuring, rather than the employee's performance.