Question
Bryan searched for a new bank prior to filling out his direct deposit form at his new employer. He noted that 2-4-7 Bank offered higher interest rates on savings accounts and money market accounts; and it offered other amenities such as online banking and funds transfer that many traditional banks offer. What is the most logical reason that 2-4-7 Bank can compete for customers by offering higher interest rates?
A The bank has no buildings and locations. Due to low overhead, it is able to share the savings it realizes with its customers.
B The bank pays its employees less than other banks.
C The bank probably cannot compete this way, for long. In order to build its market share, it is offering this as a one-time promotion.
D Its bank reserve requirement is less, due to the fact that the assets it is holding are not as substantial as bigger, traditional banks.
This question is taken from Business 1 – Introduction to Business » Spring 2020 » Chapter 20 Quiz
