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280.Which of the following explains why Internet banks often offer their customers better interest rates than traditional banks?A. Internet banks provide their customers a greater sense of security.B. Traditional banks charge lower prices for financial services.C.Internet banks have lower overhead costs.D. Traditional banks offer the electronic transfer of customer funds.Feedback: Internet banks, like E*Trade Bank, can offer better interest rates and lower fees because they do not have the costs of physical overhead that brick-and-mortar banks have.Answer: CAACSB: Reflective ThinkingBloom’s: UnderstandLearning Objective: 20-06 Describe how technology helps make banking more efficientLevel of Difficulty: 2 MediumTopic: Technology and Banking 20-89
Chapter 20 - Money, Financial Institutions, and the Federal Reserve281.When a customer purchases an item with a debit card:282.Banks prefer that customers use an electronic funds transfer system rather than traditional methods of payment because:20-90
Chapter 20 - Money, Financial Institutions, and the Federal Reserve