Which of the following does NOT represent a way in which financial intermediaries take advantage of economies of scale?
A) paying lower brokerage fees per dollar invested
B) paying lower legal fees per dollar invested
C) purchasing sophisticated computer systems
D) paying lower taxes per dollar invested

Question

Quizplus · Accepted Answer

Financial intermediaries cannot take advantage of economies of scale in terms of paying lower taxes per dollar invested as taxes are generally levied at a fixed rate and not affected by the size of the investment. The other options, such as paying lower fees per dollar invested or purchasing sophisticated computer systems, can lead to cost savings as the size of the investment increases.

Which of the Following Does NOT Represent a Way in Which