You have searched online and found banks offering two different interest rates for the same service:...
You have searched online and found banks offering two different interest rates for the same service: Bank A offers 4.5%/a and Bank B offers 4.9%/a. All other terms of the service are the same.
In what situation would you be better off choosing Bank A? Explain
Homework Answers
Although Bank A is offering low rate of interest but in certain situations Bank A can be selected. Few of these conditions are as follows:
- Quality of service provided: What is important is that service should be provided of good quality and at a proper time. So, if quality of Bank A is better than of Bank B it can be selected.
- If bank A is located at near location than other bank , it can be selected because it helps in quick working and saves a lot of time.
- If bank A works for longer hours it can further help in business as the service can be taken for the longer period.
- Other services like online facilities, Tele communications can make a difference in selecting the bank.
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