The Most Important Source of the Changes in Supply Conditions

question 108

Multiple Choice

The most important source of the changes in supply conditions that stimulate financial innovation has been the

• A) deregulation of financial institutions.
• B) dramatic increase in the volatility of interest rates.
• C) improvement in computer and telecommunications technology.
• D) dramatic increase in competition from foreign banks.

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Definitions:

Financial Statements

Records that outline the financial activities and condition of a business, including the balance sheet, income statement, and cash flow statement.

Financial Position

An overview of a company's financial situation, encompassing its assets, liabilities, and equity at a specific point in time.

Income Statement

A financial statement that shows a company's revenues, expenses, and profits over a specific period, indicating the financial performance.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, giving insight into its financial position.