How can operating expenses of an FI be reduced by improved technological efficiency?
A)By improving the efficiency of management of information flows.
B)By obtaining access to low cost sources of funds.
C)By linking services to the quality of the FI's technology.
D)By innovating new interest earning products.

Question

Quizplus · Accepted Answer

Improved technological efficiency can help reduce the operating expenses of an FI by improving the efficiency of management of information flows. This can include automating processes, eliminating manual errors, and reducing the need for physical paperwork. This can lead to reduced labor costs, higher productivity, and generally lower operating expenses. Options B, C, and D are not directly related to technological efficiency and may not necessarily lead to a reduction in operating expenses.

How Can Operating Expenses of an FI Be Reduced by Improved