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:

Total Investment

Refers to the cumulative sum of money invested in a particular asset or portfolio over a period of time.

Canadian Dollar

The official currency of Canada, symbolized as CAD in the foreign exchange market.

87.5%

A numerical value representing 87.5 parts out of 100; often used in statistical or financial contexts.

Percent Reduction

The percentage by which a quantity is decreased, commonly used in sales and discount contexts.