Which of the following is(are) explicit prices paid by banks to acquire deposits?
A) interest payments
B) fees
C) gifts
D) a and b
E) a, b, and c

Question

Quizplus · Accepted Answer

Interest payments, fees, and gifts are all explicit prices paid by banks to acquire deposits. Interest payments are the most direct form of compensation to depositors. Fees can be charged for specific services or as part of the account maintenance, which indirectly encourages deposits by providing services. Gifts, although less common, can also be a direct incentive for customers to open or maintain deposits with a bank.

Which of the Following Is(are) Explicit Prices Paid by Banks