Research indicates that economies of scale (cost savings) often results in mergers of financial institutions which are relatively:
A. small in size.
B. large in size.
C. medium in size.
D. undercapitalized.
E. overcapitalized.
Dorchester County has the following five banks in its market area:
Bank Total Assets
First National Rank, NA $1,500 million
Dorchester County Bank $750 million
First State Bank $500 million
Summerfield Bank $250 million
Charlestown Bank $250 million
All Banks $3,250 million
Answers: 2
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