Which of the Following Has Proven to Be Strong Competition

question 25

Multiple Choice

Which of the following has proven to be strong competition for bank deposit and transaction account products?

• A)Commercial paper market.
• B)Money market mutual funds.
• C)Finance company business credit.
• D)Hedge funds.
• E)None of the above.

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Definitions:

Financial Leverage

The use of borrowed money to increase the potential return of an investment, which also increases the risk of loss.

Operating Leverage

A financial ratio that measures the proportion of fixed costs in a company's cost structure, indicating how a change in sales volume will impact operating income.

Economic Value Added

A measure of a company's financial performance based on the residual wealth calculated by subtracting a firm's cost of capital from its operating profit.

Compensation

Payment or benefits provided in exchange for services rendered or as reimbursement for expenses, often related to employment or services provided.