Describe the Disadvantages of Online and Mobile Banking

question 60

Essay

Describe the disadvantages of online and mobile banking.

Understand the concepts of leverage and its application in hedge funds.

Distinguish between genuine investment strategies and investment fraud.

Recognize the importance of liquidity and redemption policies in hedge fund operations.

Understand the size and significance of U.S. equity markets within the global context.

---

Definitions:

Fixed Costs

Expenses that do not fluctuate with changes in production level or sales volume, such as lease payments, salaries, and insurance.

Operating Leverage

A financial concept that measures the extent to which a firm can increase operating income by increasing revenue, highlighting the impact of fixed versus variable costs.

Break-even Point

The point at which total costs equal total revenue, meaning the business makes neither a profit nor a loss.

Variable Cost

Costs that change in proportion to the level of production or business activity, such as materials, labor, and utility costs.