Conventional wisdom holds that there are __________ in banking.

Question

Quizplus · Accepted Answer

Conventional wisdom in banking suggests that there are economies of both scope and scale. Economies of scale occur when increasing production lowers the average cost per unit, while economies of scope arise when producing a wider variety of products leads to lower average costs. In banking, expanding the range of financial services (scope) and increasing the volume of transactions or assets managed (scale) can both lead to more efficient operations.

Conventional Wisdom Holds That There Are __________ in Banking