Which of the following reduces the risk of moral hazard and the bank's risk in making loans?
A. Collateral
B. Adverse selection
C. Fixed interest rate
D. Securitization
Answer: A
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Review the transactions below and identify with an "X" those that would be posted as a credit in the ledger (The first one has been done for you):__X_1. Salary Payable was increased.____ 2. Cash was decreased____ 3. Equipment was increased____ 4. Common Stock was increased____ 5. Salaries Expense was increased____ 6. Accounts Receivable was decreased____ 7. Unearned Revenue was increased____ 8. Dividends was increased____ 9. Supplies was increased____ 10. Building was increased____ 11. Utilities Expense was increased____ 12. Service Revenue was increased
What will be an ideal response?
Costs that are incurred for monitoring and inspecting are:
a. prevention costs b. detection costs c. appraisal costs d. failure costs
Chuck is part of a team identifying ideas to cut expenses. The team has decided to hold a brainstorming session. Which of the following strategies would likely produce the best results?
A) Discourage wild thinking; all ideas generated should be rational and feasible. B) Critique and evaluate each idea as it is presented during the brainstorming session. C) Set an established time limit. D) To encourage the maximum number of ideas, avoid defining the problem at the beginning of a brainstorming session.
Reliability, in the context of a service industry, refers to ______.
a. promptness b. price c. packaging d. compliance