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:

Account

An account in accounting is a record within the general ledger that is used to collect and store debit and credit amounts.

Chart of Accounts

A structured list of all the financial and accounting accounts used by an organization to categorize and record financial transactions.

Transaction

An agreement or exchange between two parties that involves the transfer of goods, services, or funds.

Multi-Step Income Statement

An income statement that separates operating activities from non-operating ones, showing multiple levels of income or profit.