The Deposit Pricing Method That Focuses on the Added Cost

question 76

Multiple Choice

The deposit pricing method that focuses on the added cost of bringing in new funds is called:

• A)free pricing.
• B)conditionally free pricing.
• C)flat-rate pricing.
• D)marginal cost pricing.
• E)nonprice competition.

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Definitions:

Members Appointed

Members appointed refer to individuals who are placed in a position or role within an organization or board by selection rather than election.

Open Market Committee

A committee within a central bank, like the Federal Reserve in the United States, that makes key decisions about interest rates and the growth of the United States money supply.

Federal Reserve System

The central banking system of the United States, responsible for monetary policy, regulation of financial institutions, and management of the country's money supply.

Required Reserves

The minimum amount of reserves a bank is required to hold by central bank regulation, aimed at ensuring the bank's liquidity and stability.