The Introduction of ATMs in the Banking Industry Illustrates That

question 58

Multiple Choice

The introduction of ATMs in the banking industry illustrates that ATMs

• A) can be substitutes for labor in handling cash deposits and withdrawals, but they can be complements for labor in other banking functions.
• B) are more productive substitutes for labor in most banking transactions, thereby reducing the long-term demand for labor by banks.
• C) increased the demand for labor by banks because the ATMs proved to be less productive substitutes for labor.
• D) are much better complements for labor, causing banks to reduce the number of their branch locations.

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Definitions:

Net Sales

Total revenue from sales less returns, allowances, and discounts.

Sales Discounts

A reduction in the price of goods or services offered to customers, typically to prompt early payment or bulk purchases.

Sales Returns

Transactions where a buyer returns previously purchased merchandise back to the seller, leading to a refund or credit.

Gross Sales

The total of all sales transactions before any deductions for returns, allowances, or discounts.