Which of the Following Implies That Small FIs Are More

Multiple Choice

Which of the following implies that small FIs are more cost efficient than large FIs, and that in a freely competitive environment for financial services, small FIs may outperform their larger counterparts?

A) Economies of scale.
B) Diseconomies of scale.
C) Economies of scope.
D) Diseconomies of scope.
E) Constant returns to scale.