An FI's Operating Cost and the Efficient Use of Technology

question 45

Multiple Choice

An FI's operating cost and the efficient use of technology:

• A)have no impact on the FI's profits before taxes
• B)can have a significant impact on the FI's profits before taxes
• C)will merely improve the FI's reputation
• D)are not important as FIs have the back-up of the government in times of financial distress

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Definitions:

Supply Curve

A graphical representation of the relationship between the price of a good or service and the amount that suppliers are willing to offer for sale, typically upward sloping because higher prices incentivize more production.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price during a specific time period.

Quantity Demanded

The aggregate quantity of a product or service that buyers are ready and capable of buying at a particular price point.

Surplus

An excess of what is needed or used, typically referring to goods, services, or resources exceeding what is required.