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What are the trade-offs involved between storing liquidity and purchasing liquidity as needed for a bank?
Customer Level Costs
Expenses directly associated with serving a specific customer, including sales calls, shipping, and customer support.
Market Level Costs
The costs associated with bringing a product or service to market, considering the competitive pricing environment.
Contribution Margin
A financial metric that represents the difference between a product's price and its variable costs, indicating how much contributes to covering fixed costs and generating profit.
Variable Cost
A financial term describing expenses that vary directly with the production volume, such as materials and labor.
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