1) The most important source of the changes in supply conditions that stimulate financial innovation has been the
A) deregulation of financial institutions.
B) dramatic increase in the volatility of interest rates.
C) improvement in computer and telecommunications technology.
D) dramatic increase in competition from foreign banks.
2) New computer technology has
A) increased the cost of financial innovation.
B) increased the demand for financial innovation.
C) reduced the cost of financial innovation.
D) reduced the demand for financial innovation.
3) Credit cards date back to
A) prior to the second World War.
B) just after the second World War.
C) the early 1950s.
D) the late 1950s.
4) A firm issuing credit cards earns income from
A) loans it makes to credit card holders.
B) subsidies from the local governments.
C) payments made to it by manufacturers of the products sold in stores on credit card purchases.
D) sales of the card in foreign countries.