The Introduction of ATMs in the Banking Industry Illustrates That

question 58

Multiple Choice

The introduction of ATMs in the banking industry illustrates that ATMs

• A) can be substitutes for labor in handling cash deposits and withdrawals, but they can be complements for labor in other banking functions.
• B) are more productive substitutes for labor in most banking transactions, thereby reducing the long-term demand for labor by banks.
• C) increased the demand for labor by banks because the ATMs proved to be less productive substitutes for labor.
• D) are much better complements for labor, causing banks to reduce the number of their branch locations.

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Definitions:

Sale of Land

A transaction involving the transfer of ownership of a parcel of land from one party to another.

Unrealized Profit

Profit that has been generated on paper through an investment but has not yet been realized through the sale of that investment.

Consolidating Entries

Journal entries made in the preparation of consolidated financial statements to remove the effects of intercompany transactions among the entities within a consolidated group.

External Parties

Individuals or entities that are not part of a firm but are interested in its financial information, such as investors, creditors, or regulatory agencies.