Which of the Following Contributed to Falling Profits for Banks

question 54

Multiple Choice

Which of the following contributed to falling profits for banks in the 1970s and early 1980s?

• A) Regulation Q
• B) high inflation
• C) competition from mutual funds
• D) all of the above

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Definitions:

Fixed Portion

The part of a cost or expense that remains constant regardless of changes in the level of activity or volume of production.

Variable Selling

Selling expenses that change in proportion to the volume of sales, such as commissions.

High-low Method

An accounting technique used to estimate variable and fixed costs from the highest and lowest levels of activity.

Variable Component

Part of a cost or expense that varies directly with the level of activity, production, or sales.