Since 1974,commercial Banks Importance as a Source of Funds for Nonfinancial

question 78

Multiple Choice

Since 1974,commercial banks importance as a source of funds for nonfinancial borrowers

• A) has shrunk dramatically, from around 40 percent of total credit advanced to around 25 percent by 2011.
• B) has shrunk dramatically, from around 70 percent of total credit advanced to below 50 percent by 2011.
• C) has expanded dramatically, from around 50 percent of total credit advanced to above 70 percent by 2011.
• D) has expanded dramatically, from around 30 percent of total credit advanced to above 50 percent by 2011.

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales over a certain period, such as rent, salaries, and insurance.

Variable Costs

Costs that vary in direct proportion to changes in levels of production or sales.

Fixed Costs

Expenses that do not change in proportion to the level of production or sales activities, such as rent, salaries, and insurance premiums.

Net Income

The total profit of a company after all revenues, costs, and expenses have been deducted, often referred to as the bottom line.