Some Banks Offer Special Accounts Designed to Attract Junior High

question 104

Multiple Choice

Some banks offer special accounts designed to attract junior high school students. Savings in these accounts are generally small amounts, which cost banks more to maintain than they are worth; however, bankers know that consumers are creatures of habit and hope that these young people will become adult customers. These banks recognize

• A)that operational excellence is an important macro strategy.
• B)the lifetime value of customers.
• C)that product excellence leads to loyal customers.
• D)the importance of making decisions based on short-term results.
• E)that if customers bring in some revenue, costs do not matter.

Learn the concept of fair and unfair bets in the context of expected outcomes.

Understand how marginal utility of income varies with risk preferences.

Analyze the impact of disability or loss of income on utility and decision-making towards insurance policies.

Understand the fundamental principles of contract law, including offer, acceptance, and consideration.

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Definitions:

Labor Force

The total number of people eligible to work, including both the employed and the unemployed.

Unemployment Rate

The quota of the labor force that is experiencing unemployment while actively seeking ways to be employed.

Adults Employed

The segment of the adult population that is currently engaged in employment and receiving compensation for their labor.

Adults Unemployed

Refers to individuals of working age who are without a job, available to work, and actively seeking employment.