Question

question 2 of 10
how is an online bank different from a retail bank?

a. an online bank has lower operating costs than a retail bank.

b. a retail bank has longer business hours than an online bank.

c. an online bank is a nonprofit entity, and a retail bank is a for - profit entity.

d. online bank and retail bank refer to the same entity, so there is no difference between them.

Explanation:

• For option A: Online banks don't have physical branch costs (like rent, in - person staff), so their operating costs are lower than retail banks with physical branches.
• For option B: Online banks are often available 24/7, while retail banks have set business hours, so this is incorrect.
• For option C: Most online banks are for - profit, same as many retail banks, so this is wrong.
• For option D: Online and retail banks are different (different operation models, cost structures), so this is incorrect.

Answer:

A. An online bank has lower operating costs than a retail bank.