Changes in ____ Are a Factor Affecting the Value of a Commercial

question 4

Multiple Choice

Changes in ____ are a factor affecting the value of a commercial bank over which the bank has some control.

• A)economic growth
• B)the risk-free interest rate
• C)industry conditions
• D)management abilities
• E)None of these are correct.

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Definitions:

Average Fixed Costs

The total fixed costs of production divided by the quantity of output produced, indicating how fixed costs change with different levels of production.

Marginal Costs

The increase in total cost that arises from an extra unit of production.

Fixed Factors

Inputs in production that cannot be altered in the short term, such as buildings and machinery.

Output

The amount of goods and services produced by a business, industry, or economy.