Using deposit fee schedules that vary deposit prices according to the number of transactions,average balance in the deposit account,and maturity of the deposits represents which of the deposit pricing method listed below?
A)Marginal cost pricing
B)Cost plus pricing
C)Conditional pricing
D)Upscale target pricing
E)None of the options is correct.

Question

Quizplus · Accepted Answer

The deposit fee schedule that varies deposit prices based on the number of transactions, average balance, and maturity of deposits represents conditional pricing. This pricing method offers discounts or higher fees based on certain conditions, such as account usage or characteristics. Marginal cost pricing is based on the cost of providing each additional unit of a product or service. Cost plus pricing involves adding a markup to the cost of providing a product or service. Upscale target pricing involves setting higher prices to attract customers who are more willing to pay for premium products or services.

Using Deposit Fee Schedules That Vary Deposit Prices According to the Number