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Under the GLB Act, the basic difference between a consumer and a customer is:

A) The frequency of transactions.
B) The type of financial product.
C) The existence of an ongoing relationship.
D) The level of income.

1 Answer

3 votes

Final answer:

The key difference under the GLB Act between a consumer and a customer is the existence of an ongoing relationship with the financial institution. Consumers may simply make transactions, while customers engage with the institution on a continuous basis. Banks and the marketplace are significantly influenced by technology and globalization, which widen consumer choices and enhance competition.

Step-by-step explanation:

Under the GLB Act, the basic difference between a consumer and a customer is: C) The existence of an ongoing relationship. A consumer refers to anyone who obtains financial products or services, which are generally limited to personal, family, or household purposes. On the other hand, a customer is someone who has an ongoing relationship with a financial institution, which may involve the repeated use of the institution's services or the holding of an account.

Banks are key to an economy, assisting individuals in saving and loaning money. Financial institutions charge interest rates to profit from the money they lend. It is important for individuals to understand their responsibilities when borrowing money, as their credit score affects borrowing terms. In the market, consumers benefit when they obtain better or less expensive products, which simultaneously can increase profits for businesses and income for employees.

Furthermore, in our increasingly global and technologically connected world, a consumer has a broader reach for purchasing products and services from different regions, heightening competition among businesses both locally and globally.

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User Matt Scheurich
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