All of the Following Are Considered Cost Synergies EXCEPT

question 14

Multiple Choice

All of the following are considered cost synergies EXCEPT:

• A)Head count reduction
• B)Consolidation of facilities
• C)Lower cost of capital
• D)Economies of scale

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Definitions:

Money Multiplier

A factor that quantifies the amount of money that banks generate with each unit of reserves.

Reserve Ratio

The fraction of deposits that banks are required to keep on hand as reserves, aimed at ensuring liquidity and controlling the money supply.

Discount Rate

The interest rate charged by central banks on loans they offer to commercial banks or the rate used in discounted cash flow analysis to determine the present value of future cash flows.

Money Supply

The full tally of available monetary resources in an economy at a specified time, comprising cash, coins, and checking and savings account funds.