Answer: D) economies of scale.
Explanation:
Economies of scale refers to when an entity is able to reduce its total costs as quantities of the good causing the costs increase.
Financial Intermediaries such as Commercial banks, Mutual funds, Investment banks etcetera have a lot of funds available for trade which they use to execute large trades. As a result, the costs on average are lower or them per transaction as opposed to traders executing with lower volumes. For example, when purchasing shares they will be able to negotiate better fees with stockbrokers because they are buying a lot of shares as opposed a single buyer trading.
Sounds creative! I will help you.
Sweatshirts- can be marketed to grandparents with a slogan and design on the sweatshirt they can relate to. The slogan can be Grandparents Rock! and the shirt can have different sayings like "my grandparent is cool or grandparents are smart...
Electronics- Advertise to grandparents by informing them that electronics tell time, have alarms to wake them, and they can read using them along with keeping tabs on their family.
art supplies- Advertise to the grandparents by offering a senior citizen sale for grandparents who like to draw, paint, and color with their grand children .
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Answer:
Bank, savings account.
Explanation:
The average interest rate that you get if you put your money in Saving account is only between 0.06 - 0.35 % each year. For most people, this won't even cover the bank charges.
But, other form of accounts that provide you higher interest rates typically less liquid. It means that the amount of money that you put would be stuck in that account for a specific period of time. You wouldn't be able to take out the money that you put in such account until the period is over.
