ATMs, Mortgage Offset Accounts and Telephone Banking Are All Evidence

question 30

Multiple Choice

ATMs, mortgage offset accounts and telephone banking are all evidence that:

• A) the banks are a law unto themselves and need to be reigned in.
• B) bank branches have become completely unnecessary.
• C) hybrid securities can be created by combining debt and equity instruments into one.
• D) deregulation has produced innovation.

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Definitions:

Firm

A firm is an organization engaged in commercial, industrial, or professional activities, aiming to generate profits from its operations.

Risk-adjusted

This term describes the process of taking financial risks into account when evaluating the potential returns of an investment, leading to a more accurate understanding of its true value.

Discount Rates

The interest rate used to calculate the present value of future cash flows.

Risk

The possibility of losing some or all of an investment, reflecting uncertainty about the actual future returns.