According to the <em>"Not Too Big Enough" </em>article, some of the <em>sources of </em><em>scale economies</em><em> in the banking and finance industry</em> are as follows:
1. Bigger banks can spread their investment (fixed) costs over more output, thereby <em>reducing the </em><em>cost per unit </em><em>and making it impossible for </em><em>smaller banks </em><em>to compete in the market</em>. Most often, the smaller banks cannot afford investments in modern banking computing power and systems management.
2. Bigger banks can <em>consolidate banking functions</em> with the <em>elimination of redundancies </em>after each merger and acquisition. The cost of redundancies also gives them economies of scale.
3. Bigger banks have access to <em>larger pools of </em>deposits and will not engage in borrowing at higher costs. Smaller banks cannot tow this line because of their small scale, lacking the required funding mix.
4. Finally, advertising works best where a bank has a large geographic spread. The cost of advertising over a large area is worth it, unlike when a small bank markets its services by advertising.
2. These economies of scale mean that Oligopolies are increasing on Wall Street, and there will be further consolidations of smaller banks. Of course, every small bank would like to engage in mergers and acquisitions to grab a share of the scale economies.
Thus, <em>as banks grow large</em>, they should be mindful that enjoying the scale economies comes with the risk of crumbling like the banks regarded as <em>"too big to fail" </em>when they build on a pack of cards.
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The markup percentage tells you how much money a business makes off each sale. If Dani is selling products with a higher mark up, this means she makes more money off each dollar of sales. In this case, you would expect Dani's profit margins to increase due to the increased markup percentage.
Answer:
Explanation:
<u>Linear Modeling</u>
Models are an important part of the study of a variety of natural phenomena in a great number of fields like science, health, business, human behavior, economics, among many others.
Once a model is determined, it can be used to estimate future values of important variables which in turn can help people to make decisions.
It has been determined a model that relates the amount of term life insurance a family of four should have with the current age of the head of the household. That model is
we are required to estimate the amount of term life insurance to recommend to a family of four when the head of the household is x=41 years old. Let's plug in the given value in the equation
Answer:
hepatitis B; puts you at risk for exposure to bloodborne pathogens
Explanation:
Work practice controls involves all the steps taken in order to decrease the likelihood of getting exposed to any disease or viruses in the workplace. These steps include heath hygiene in vaccinations that are intended to protect the human resources. Hygiene management helps the employers to maintain their health during their workhours.
In jobs where the employees are exposed to the bloodborne pathogens, it is the responsibility of the employer to vaccinate the employee against hepatitis B.
