Which of the following situations is an example of bank mismanagement?
a. Bank A receiving a deposit of $40,000 from a client and giving it out as a loan to another client the next day
b. Bank B giving a loan to a client, knowing he probably would not pay it back
c. Bank C investing in bonds issued by the federal government since it could not find potential borrowers
d. Bank D selling a loan to Bank C since it did not have resources to recover the loan
b
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All points above a given indifference curve are
A) inferior to any point on the indifference curve. B) preferred to any point on the indifference curve. C) definitely not affordable. D) Both answers Band C are correct.
A production point that lies outside the Production Possibilities Curve (PPC)
A) denotes inefficiency. B) indicates unemployment. C) is currently not attainable. D) can never be reached, even in future periods.
The current account records
a. last year's flows of funds into and out of the country b. current flows of imports and exports of goods and services, net income earned by U.S. residents from foreign assets, and net transfer payments c. current flows of imports and exports of goods only d. only net income earned by U.S. residents from foreign assets e. only current flows of imports and exports of goods and services and net transfer payments
When unwanted inventories pile up in retail stores, retail managers will take actions that lead to greater
A. Wages. B. Economic growth. C. Inflation. D. Unemployment.