Technological Risk

question 22

Multiple Choice

Technological risk:

• A)can only lead to an FI's short-term distress
• B)refers to the scenario that technological investments produce the anticipated cost savings
• C)can result in major losses and the long-term viability of the FI
• D)refers to the scenario that technological investments do not produce the anticipated savings, and can cause major losses and impact on the viability of the FI

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Definitions:

Income

The financial gain or money received by an individual or entity, usually through employment, investment, or business ventures.

Consumer Equilibrium

Consumer Equilibrium is the state at which the allocation of goods and services by a consumer ensures the maximum utility given their budget constraints.

Utility Maximization

An economic principle that suggests individuals seek to achieve the highest satisfaction possible with their available resources.

Consumer Equilibrium

A condition where the allocation of goods and services among consumers in such a way that the utility derived from each is maximized.