As Banks and Other FIs Increase the Use of Technology

question 17

Multiple Choice

As banks and other FIs increase the use of technology, an unintended consequence may be that

• A)cost savings are seldom realized.
• B)customers are driven away because they still want to interact with a person for certain transactions.
• C)innovation of new products tends to take longer periods of time to attract new customers.
• D)the marginal cost of adding new customers tends to increase at an increasing rate.
• E)None of the options.

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Definitions:

Jurisdictions

The official power to make legal decisions and judgments, often within a specified geographic area or over certain types of legal cases.

Guarantee

A legal commitment to assume responsibility for another's debt or obligations if that individual fails to meet them.

Indemnity

A contractual agreement in which one party agrees to compensate for any losses or damages suffered by another.

Encryption

The process of converting information or data into a code, especially to prevent unauthorized access.