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:

Celler-Kefauver Act

A United States antitrust law passed in 1950, aimed at preventing anti-competitive mergers and acquisitions by closing loopholes in the earlier Clayton Antitrust Act.

Clayton Act

A United States antitrust law enacted in 1914, aimed at promoting competition by preventing unfair business practices such as price discrimination and exclusive dealings.

Sherman Act

A landmark federal statute in the field of U.S. antitrust law aimed at prohibiting monopolistic practices and promoting competition.

Clayton Act

A U.S. antitrust law, passed in 1914, aimed at protecting trade and commerce against unlawful restraint and monopolies.