Question

question 14
3.5 pts
which following statement is true of internet banks?
google translate

most internet banks also staff physical banks and branch offices.

they have high operating expenses because they must maintain enough staff to be
available 24 hours a day.

their low overhead costs allow them to pay higher interest rates on savings accounts.

most of their services must be paid for with service charges.

Explanation:

1. Analyze Option 1: Most Internet banks are purely online and don't have physical branches, so this is false.
2. Analyze Option 2: Internet banks have low operating costs as they don't need many staff for physical branches, so this is false.
3. Analyze Option 3: Internet banks have low overhead (no physical branch costs), so they can offer higher interest rates on savings accounts. This is true.
4. Analyze Option 4: Many Internet banks offer free services or low - cost services, and not most services require service charges, so this is false.

Answer:

C. Their low overhead costs allow them to pay higher interest rates on savings accounts.