Price normal charged in attempt to cover their startup costs

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Reference no: EM131392535

1. Which of the following statements is correct?

A) Federal Reserve district banks are owned by the government.

B) Member banks receive no return on the stock they own in Federal district banks.

C) Federal Reserve district banks pay dividends on their earnings to member banks.

D) The boards of directors of the district banks are all local bankers.

2. True/False

The penetration pricing strategy is where a new entrant charges a price that is initially higher than the price normal charged in attempt to cover their startup costs.

Reference no: EM131392535

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