The deposit pricing method that focuses on the added cost of bringing in new funds is called:
A)free pricing.
B)conditionally free pricing.
C)flat-rate pricing.
D)marginal cost pricing.
E)nonprice competition.

Question

Quizplus · Accepted Answer

Marginal cost pricing focuses on setting prices based on the additional cost of producing or acquiring an extra unit of a product or service. In the context of deposit pricing, this method would take into account the cost of acquiring new funds, such as marketing expenses or higher interest rates, and would set deposit rates accordingly.

The Deposit Pricing Method That Focuses on the Added Cost