financial literacy question

Question Description

 With the wide availability of the Internet, many financial institutions are exclusively online. These Internet-only banks can usually offer higher rates on interest-bearing accounts than traditional, brick-and-mortar banks. Why do you think Internet exclusivity translates to higher rates on interest-bearing accounts?

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Final Answer

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it goes under supply and demand, since these online bans are growing at fast rate, more people are coming to their service, which puts down the demand for the brick and mortar banks. Thus the online bank s have the ability to charge higher ate knowing that it will not hinder the number of customers coming in

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Fatin Menhaz (1755)
Rice University

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