Mesa Financial is a small bank located in west Texas. As a small bank, Mesa has a rather limited range of services: mortgage loans, installment (mostly auto) loans, commercial loans, checking and savings accounts, and certificates of deposit. Mesa’s management has learned that activity analysis could be used to study the efficiency of the bank’s operations.

Required
1. Explain how activity analysis might help a bank like Mesa.
2. Give six to eight examples of activities you would expect to identify in Mesa’s operations.