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Changes in Technology and the Explosive Growth of Direct and Online

question 53

Multiple Choice

Changes in technology and the explosive growth of direct and online marketing are having a profound impact on the nature and design of marketing channels. One major trend is toward ________ insofar as product or service producers cut out intermediaries and go directly to final buyers or when radically new types of channel intermediaries displace traditional ones.


Definitions:

Arbitragers

Traders who buy and sell assets, such as stocks or commodities, in different markets or forms to profit from differing prices for the same asset.

Risk-Free Profits

Profits made from an investment that is considered to have no risk of financial loss.

Swap Market

The swap market is a financial market where parties exchange streams of cash flows or other financial instruments for a set period, often to manage risk or obtain better loan terms.

Fed Funds Rate

The rate at which banks and other financial institutions borrow and lend their Federal Reserve deposits to one another on an overnight basis.

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