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Question
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.
Answer
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A. Loan and lease loss allowance is added to gross loans.
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According to the textbook, the lackadaisical profit performance surrounding a merger may be explained by the:
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