Web-Based Banks May Charge Less in Fees but Also Pay

question 45

True/False

Web-based banks may charge less in fees but also pay less interest on deposits because they have no branch expenses.

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Definitions:

Increasing Opportunity Costs

The economic concept that as production of a good increases, the opportunity cost of producing an additional unit of that good also increases.

Production Possibilities Schedule

A graphical representation that shows the different combinations of two goods or services that can be produced within a given time period, provided that available resources and technology are static.

Consumer Goods

Goods that are produced for direct consumption by the end user.

Capital Goods

Long-term assets purchased by businesses to produce goods and services.