The Entry of AT&T and GM into the Credit Card

question 60

Multiple Choice

The entry of AT&T and GM into the credit card business is an indication of

• A)government's efforts to deregulate the provision of financial services.
• B)the rising profitability of credit card operations.
• C)the reduction in costs of credit card operations since 1990.
• D)the sale of unprofitable operations by Bank of America and Citicorp.

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Definitions:

Stagflation

An economic situation characterized by prolonged high inflation combined with high unemployment and stagnant demand in a country's economy.

Depression

A severe and prolonged downturn in economic activity, characterized by significant decline in gross domestic product, high unemployment, reduced consumer spending, and deflation.

Inflation

The rate of increase in the average cost of goods and services, which results in a decrease in the value of money.

President Eisenhower

Dwight D. Eisenhower, the 34th President of the United States, who served from 1953 to 1961 and was known for his role in ending the Korean War and promoting infrastructure development.