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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It's b or d. but it means some sort of support
Answer:
C. The policy is in effect because Tony had the implied authority to issue the policy.
Explanation:
In the situation of Tony, it could be concluded safel that he has the implied authority due to the fact that, most of the company's forms and logos are still with him. And, also, none of the company's customers were notified about the termination of Tony's contract thereby invalidating him as being one of the staff of the company.
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Answer:
The correct answer is C)
Linear operations in contiguous AOs.
Explanation:
JFC stands for Joint Forces Command.
AO in United States Army nomenclature means Area of Operations.
Linear Operations is a military terminology which refers to the execution of operations using their own troops engaged in combat in a forward fashion. Linear operations military tactics allow commanders to channel and maintain combat power toward enemy forces along with adjacent units. Another word for adjacent units is <em>Adjacent Operations</em>.
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