As Banks and Other FIs Increase the Use of Technology

question 82

Multiple Choice

As banks and other FIs increase the use of technology, an unintended consequence may be that

• A)cost savings are seldom realized.
• B)customers are driven away because they still want to interact with a person for certain transactions.
• C)innovation of new products tends to take longer periods of time to attract new customers.
• D)the marginal cost of adding new customers tends to increase at an increasing rate.
• E)None of the above.

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, usually derived from profits.

Management Fees

Charges levied by management for the operation of an investment fund, company, or another entity, usually calculated as a percentage of assets under management.

Consolidated Retained Earnings

The portion of net earnings not paid out as dividends, but retained by the company to reinvest in its core business, or to pay debt, reported in the consolidated financial statements.

Subsidiary's Adjusted Income

The net income of a subsidiary company after making adjustments for fair value measurements, currency translation, and other accounting policies.