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How is an online bank different from a retail bank? A. Online bank and retail bank refer to the same entity, so there is no difference between them. B. An online bank has lower operating costs than a retail bank. C. A retail bank has longer business hours than an online bank. D. An online bank is a nonprofit entity, and a retail bank is a for-profit entity.

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madison3395

Answer:

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

Explanation:

An online bank different from a retail bank. This is because, an online bank has lower operating costs than a retail bank.

bharathparasad577

Option B is the correct answer. Online Banks have lower operating costs than Retail Banks.

What are Operating Costs?

  • Operating Costs are the fees/payments that a bank is required to make in order to run the day-to-day business.
  • Operating Costs could include the rent for buildings or space, transportation costs of goods or money, internet costs, electricity costs, advertisement costs and the like.

Why are Operating Costs Lower for Online Banks?

  • Generally, Online Banks do not incur high operating costs as compared to Physical/Retail Banks.
  • This is because, online banks can afford to cut down on physical costs such as rent, electricity, water or gas.
  • This way, the Retail Banks require more funds to pay for physical costs.

Therefore, Online Banks have lower operating costs than Retail Banks.

Learn more about the benefits of Online Banking here:

https://brainly.com/question/9608829

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