Some Banks Offer Special Accounts Designed to Attract Junior High

question 60

Multiple Choice

Some banks offer special accounts designed to attract junior high school students.These kids save in such small amounts that the accounts cost banks more to maintain than they are worth; however bankers know that consumers are creatures of habit and hope that the young people they serve now 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 as long as customers bring in some revenue, costs do not matter.

---

Definitions:

Uncompensated Impact

Uncompensated impact refers to effects borne by parties who are not directly involved in a transaction or activity and are not compensated for their losses.

Well-Being

The state of being comfortable, healthy, or happy, often considered in a broad perspective including physical, psychological, and social aspects.

Externalities

Externalities are effects of a transaction that are experienced by someone who is not directly involved in the transaction, either positively (positive externalities) or negatively (negative externalities).

Charities

Organizations dedicated to furthering a particular social cause or advocating for a shared point of interest, typically operating on a non-profit basis.