Question
15) List at least two sources of economies of scale in banking. In other words, what would make a larger bank have a relative (per
15) List at least two sources of economies of scale in banking. In other words, what would make a larger bank have a relative (per unit) cost advantage over the smaller bank?
16) Consider the advantages and disadvantages of combining commercial bank products and services with investment banking products and services. Provide a list of the advantages and disadvantages, and state whether the given advantage or disadvantage you list is from the perspective of (1) bank shareholders, (2) regulatory agents seeking to protect the economy, or (3) the bank customer. (Not covered).
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