The Royal Bank Uses Different Flyers in Different Areas of Toronto

question 11

Multiple Choice

The Royal Bank uses different flyers in different areas of Toronto based on the ethnic and demographic makeup of those residents living in these areas. This type of customization is easy, because RBC is using a(n) __________approach to targeting
These residents.

• A)a sales promotion
• B)direct marketing
• C)publicity
• D)advertising

Understand the rational model of decision making and its steps.

Recognize human compromises and biases that affect decision making.

Identify the importance of evaluating alternatives in the decision-making process.

Analyze the role of feedback in improving decision outcomes.

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Definitions:

Maturity Risk

The risk that arises from the uncertain future value of investments that have a fixed earnings rate and a fixed maturity date.

Inflation Adjustment

A modification made to financial statements or figures to account for the effects of inflation.

Inflation Rates

The rate at which the general level of prices for goods and services is rising, leading to a decrease in the purchasing power of money.

Interest Rate

The percentage of a sum of money charged for its use, typically expressed annually.