China,many People Are Removing Their Money from the State Banks

question 94

Essay

China,many people are removing their money from the state banks and lending it out themselves.The interest rate earned in a state bank account is about one-half the rate of inflation.On the other hand,loaning money to friends,relatives,and even unrelated entrepreneurs can often earn the investor a rate at least double the inflation rate.The gray market,an underground network of investors and private businesses,moves the cash from lenders to businesses.Did marketing occur here? Explain your answer.

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Definitions:

Service Organizations

Businesses that provide intangible products or services to customers instead of selling physical goods.

Availability

The state of being easily obtainable or accessible, often used in reference to goods, services, or information.

Marginal Costs

The cost of producing one additional unit of a product or service, often used in economic and financial analysis to determine optimal production levels.

Service Encounters

The interactions between customers and service providers during the delivery of a service.