A bank can usually offer a saver a higher return for the same risk for all of the following reasons except:

Question

Quizplus · Accepted Answer

The other three options are valid reasons why a bank can offer a higher return for the same risk. The bank can purchase assets at a lower cost and pool resources, which allows for economies of scale in asset purchase. However, savers may still have access to the same information as the bank about the risk and return of assets, and therefore, this is not a reason why the bank can offer higher returns.

A Bank Can Usually Offer a Saver a Higher Return