15) List at least two sources of “economies of scale” in banking. In other words

Question

15) List at least two sources of “economies of scale” in banking. In other words, what would make a larger bank have a relative (per unit) cost advantage over the smaller bank?

16) Consider the advantages and disadvantages of combining commercial bank products and services with investment banking products and services. Provide a list of the advantages and disadvantages, and state whether the given advantage or disadvantage you list is from the perspective of (1) bank shareholders, (2) regulatory agents seeking to protect the economy, or (3) the bank customer. (Not covered).

Explanation / Answer

The two sources of economies of scale in banking could be:

Advantanges of combining commercial bank transaction with Investment Banking transactions:

Disadvantages

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.