Question

In: Finance

How has online banking changed the way consumers select and use various financial services? (LO4.1) What...

How has online banking changed the way consumers select and use various financial services? (LO4.1)

What relationship exists between changing interest rates and the rates of return for various savings accounts, money market accounts, and certificates of deposit of various lengths? (LO4.1)

What fees and deductions may be overlooked when balancing your checking account? (LO4.4)

Solutions

Expert Solution

1. Online banking allows customer to use the internet for financial services as against visiting the physical bank branches. Customer can now do wire transfer to make payments. This type of internet banking omits the needs of the payee and the payer to visit the physical bank to make transactions. Hence time and money is saved by all parties involved. Due to the growing net banking, banks are seen reducing the bank branches across the country.

2. When the interest rates rise, the savings accounts, money market accounts and CD's gives higher return since the Fed increases the interest rate. However, this is true for only short term bonds like the ones listed above. The long term bonds have a negative impact as interest rates rise. This is because there is an inverse relationship between the bond price and interest rates. As rate increase, prices of long term bonds fall and give a lower return to investors.

3. The normal fee that is required to maintaining your bank account and giving you the basic service can be overlooked since this is the basic minimum that is required to be deducted for running your checking account and servicing all the transaction on your account.


Related Solutions

Has the Internet changed the way consumers think and behave? What are the benefits? What are...
Has the Internet changed the way consumers think and behave? What are the benefits? What are the pitfalls? Support your position with credible references.
How has technology changed the banking industry?
How has technology changed the banking industry?
What is the scope of Fintech for the banking and financial services and explain how technologocal...
What is the scope of Fintech for the banking and financial services and explain how technologocal advancements mainly Internet of Things(IoT) has redefined the Fintech industry. (30marks)
In what way has the role of the nursing professional changed or not changed the image...
In what way has the role of the nursing professional changed or not changed the image that prevailed in 1907? Is Nursing Today Really A Profession? How is nursing socially consolidated as a profession in our times? What are the challenges facing the Nursing profession in the 21st century? Do you consider that the ethical values ​​of altruism, autonomy, human dignity, integrity and social justice are fundamental in the practice of nursing? Why?
Do you believe that banks’share of financial services has changed over the years? If so, what...
Do you believe that banks’share of financial services has changed over the years? If so, what are the main reasons for the change? Discuss with example.
List the various organizational forms to deliver international banking services
List the various organizational forms to deliver international banking services
Answer the following questions: How has technology changed the landscape of consumer fraud? What may consumers...
Answer the following questions: How has technology changed the landscape of consumer fraud? What may consumers do to protect themselves from the threats identified in these resources? How may an internal auditor leverage the IoT in a fraud examination? What legal factors does an auditor need to consider? Which resource did you find the most interesting and why?
Universal banks offer the full range of banking services, together with non-banking financial services, under one...
Universal banks offer the full range of banking services, together with non-banking financial services, under one legal entity.” Explain the financial activities of banks
What are two(2)operational problems or issues in the Banking & Financial Services sector?
What are two(2)operational problems or issues in the Banking & Financial Services sector?
Seventy percent of consumers prefer to purchase electronics online. You randomly select 8 consumers. Find the...
Seventy percent of consumers prefer to purchase electronics online. You randomly select 8 consumers. Find the probability that the number of consumers who prefer to purchase electronics online is​ (a) exactly​ five, (b) more than​ five, and​ (c) at most five. (a) Find the probability that the number that prefer to purchase electronics online is exactly five. ​P(5)equals= ​(Round to three decimal places as​ needed.) ​(b) Find the probability that the number that prefer to purchase electronics online is more...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT