An FI's operating cost and the efficient use of technology:
A)have no impact on the FI's profits before taxes
B)can have a significant impact on the FI's profits before taxes
C)will merely improve the FI's reputation
D)are not important as FIs have the back-up of the government in times of financial distress

Question

Quizplus · Accepted Answer

An FI's operating cost and efficient use of technology can have a significant impact on its profits before taxes. By reducing operating costs through the use of technology, FIs can increase profits and remain competitive in the market. FIs that fail to efficiently use technology may struggle to keep up with their competitors and could experience decreased profits.

An FI's Operating Cost and the Efficient Use of Technology