One Factor Contributing to the Decline in Cost Advantages That

question 7

Multiple Choice

One factor contributing to the decline in cost advantages that banks once had is the ________.

• A) decline in the importance of chequable deposits as part of a banks' source of funds
• B) decline in the importance of savings deposits as part of a banks' source of funds
• C) increase in the importance of chequable deposits as part of a banks' source of funds
• D) increase in the importance of savings deposits as part of a banks' source of funds

Identify the tactics used for competitive pricing and market positioning.

Explain the role of price elasticity in decision-making processes.

Understand the concept of price discrimination and its acceptability under specific conditions.

Identify the steps involved in setting prices within a competitive environment.

---

Definitions:

Bad Debts

Accounts receivable that a company does not expect to collect and writes off as a loss in its financial statements.

Balance Sheet Approach

A method for evaluating foreign subsidiaries in which assets and liabilities are translated at the current exchange rate, whereas equity accounts are translated at the historical exchange rates.

Allowance for Doubtful Accounts

An accounting provision made for potential future bad debts that might arise from credit sales being unpaid.

Uncollectible Accounts

Receivables that are considered to be uncollectable and are written off as a loss because payment is highly unlikely.