Which of the Following Reasons Is the Primary Motivator for a Commercial

question 39

Multiple Choice

Which of the following reasons is the primary motivator for a commercial bank to acquire new depositors?

• A) A new deposit account will make more funds available to pay the interest on other deposit accounts.
• B) A new deposit account will make more funds available to pay the bank's employees.
• C) A new deposit account will make more funds available to give out in loans.
• D) A new deposit account will make more funds available to give out in dividends to its investors.
• E) A new deposit account will make more funds available to facilitate brokerage transactions.

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Definitions:

Labor Input

The amount of work or effort provided by employees or workers that is used in the production of goods and services.

Total Product

The total output or production achieved by a firm or economy at a given level of input.

Marginal Product

The additional output produced by adding one more unit of a specific input, keeping all other inputs constant.

Marginal Revenue Product

The additional revenue a firm gains from employing one more unit of input, holding all other inputs constant.