Banks That Are Managed in a Very Safe and Conservative

question 139

Multiple Choice

Banks that are managed in a very safe and conservative manner can be expected to earn

• A)high, steady profits.
• B)high but volatile profits.
• C)low and consistent profits.
• D)low profits with occasional major losses.

---

Definitions:

Total Fixed Costs

Financial obligations that do not fluctuate with the amount of goods made or sold, for instance, rent, salaries, and insurance coverage.

Unit Fixed Costs

Unit Fixed Costs are the costs that do not change with the volume of production and are allocated per unit based on the total production quantity.

Total Variable Cost

Charges that fluctuate in direct relation to the volume of production or output.

Merchandising Company

A Merchandising Company is a business that purchases finished products and sells them at a profit, without altering the products themselves.