Internet Technology

question 32

Multiple Choice

Internet technology

• A) makes it easy for rivals to compete on price alone.
• B) imposes a significant cost of entry, due to infrastructure requirements.
• C) increases the difference between competitors because of the wide availability of information.
• D) makes it easy to sustain operational advantages.

---

Definitions:

Quantity of Money

The total amount of money in circulation or in existence within a particular economy.

Interest Rate

Interest Rate is the proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.

Credit Cards

Financial instruments issued by banks that allow holders to borrow funds at the point of sale, intended for short-term financing with the obligation of paying back the borrowed amount plus interest.

M1

A category of the money supply that includes all physical money like coins and currency, as well as demand deposits, checking accounts, and negotiable instruments.