The Most Important Source of the Changes in Supply Conditions

question 108

Multiple Choice

The most important source of the changes in supply conditions that stimulate financial innovation has been the

• A) deregulation of financial institutions.
• B) dramatic increase in the volatility of interest rates.
• C) improvement in computer and telecommunications technology.
• D) dramatic increase in competition from foreign banks.

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Definitions:

Labor Shortages

A situation where the demand for workers exceeds the supply in a particular market or industry.

Surpluses

Instances in which supply exceeds demand, resulting in excess goods, services, or resources.

Natural Attrition

The reduction in workforce due to employees leaving naturally through retirement, resignation, or death, rather than through layoffs.

Early Retirement

An option allowing individuals to retire before the traditional retirement age, often with specific pension or benefits arrangements.