Distinguish Between Vertical Differentiation and Horizontal Differentiation

question 76

Essay

Distinguish between vertical differentiation and horizontal differentiation.

---

Definitions:

Withdraw

Withdrawing money from a bank account or an investment.

Monthly Compounded

Interest that is calculated on the principal and previously earned interest once every month.

Nominal Rate

The advertised or stated rate of interest, not including the effects of inflation or compounding.

RRSP

Registered Retirement Savings Plan, a savings and investment vehicle for Canadians to save for retirement in a tax-efficient way.