Which of the following refers to an FI's ability to generate cost synergies by producing more than one output with the same inputs?

Question

Quizplus · Accepted Answer

Economies of scope refers to an FI's ability to generate cost synergies by producing more than one output with the same inputs. A is incorrect because market intermediation refers to the process of bringing lenders and borrowers together to facilitate the flow of funds. C is incorrect because the break-even point refers to the level of sales at which an FI generates no profit or loss. D is incorrect because economies of scale refer to the cost advantage that an FI enjoys due to an increase in the scale of production or level of operation.

Which of the Following Refers to an FI's Ability to Generate