7-102 Economies of Scale Refer to an FI's Ability to

question 50

Multiple Choice

7-102 Economies of scale refer to an FI's ability to

• A)lower its average costs of operations by expanding its output of financial services.
• B)generate cost synergies by producing more than one output with the same inputs.
• C)understand each risk and its interaction with other risks.
• D)finance its assets completely with borrowed funds.
• E)moderate the long-tailed downside risk of the return distribution.

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