John Searched for a New Bank Prior to Filling Out

question 222

Multiple Choice

John searched for a new bank prior to filling out his direct deposit form at his new employer. He noted that Twenty/Four/Seven E-Bank, Inc., offered better interest rates on savings accounts and money market accounts; and it offered other amenities such as online banking and funds transfer that many traditional banks offer. What is the most logical reason that Twenty/Four/Seven can compete for customers by offering higher interest rates?

• A) Twenty/Four/Seven probably cannot compete this way, for long. In order to build its market share, it is offering this as a one-time promotion.
• B) Its bank reserve requirement is less, due to the fact that the assets it is holding are not as substantial as bigger, traditional banks.
• C) Twenty/Four/Seven has no buildings and locations. Due to low overhead, it is able to share the savings it realizes with its customers.
• D) Twenty/Four/Seven pay its employees less than other banks.

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Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.