The Difference Between Banks and Other Financial Intermediaries Is That

question 23

Multiple Choice

The difference between banks and other financial intermediaries is that only banks have the legal authority to:

• A) transfer funds from savers to borrowers.
• B) pay interest on debt obligations.
• C) manage portfolios of assets.
• D) create assets that are part of the money supply.

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Definitions:

Controllable Factor

An element or variable in a business or process that can be modified or adjusted according to the needs of the manager or operator.

Experience Economy

An economic concept where businesses create memorable events for their customers, and the memory itself becomes the product.

Service Blueprint

A detailed diagram that visualizes the service process, points of customer contact, and the front and back-office activities that a service entails.

Customer Contact Audit

An evaluation process that examines all the points of interaction between a customer and a company to improve customer service and experience.