Which of the Following Statements Is True

question 11

Multiple Choice

Which of the following statements is true?

• A) Various studies have shown that economies of scale best explain cost discrepancies between FIs.
• B) Various studies have shown that economies of scope best explain cost discrepancies between FIs.
• C) Various studies have shown that X-Inefficiencies best explain cost discrepancies between FIs.
• D) Various studies have shown that Y-Inefficiencies best explain cost discrepancies between FIs.

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Definitions:

Inheritance

Assets received from a deceased person's estate by heirs or through a will.

Borrower's Payment

The amount of money a borrower is obligated to pay back to a lender according to the terms of the borrowing agreement.

Asset

Resources owned or controlled by a business or an individual that are expected to produce future economic benefits.

Compounded Semiannually

A method of calculating interest where the earned interest is added to the principal amount twice a year, leading to interest being earned on interest in the following periods.