In the Principal-Agent Relationship Between a Bank Manager and a Bank

question 27

Multiple Choice

In the principal-agent relationship between a bank manager and a bank teller, the manager is

• A) an agent, as is the teller.
• B) an agent and the teller is a principal.
• C) a principal and the teller is an agent.
• D) a principal, as is the teller.

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Definitions:

Economic Grounds

The basis or rationale for decisions and actions based on economic factors, such as cost, benefits, and economic efficiency.

Highway Programs

Government initiatives aimed at the construction, maintenance, and expansion of road networks for public use.

Public Good

A non-profit provision of services or products to the entirety of a society, facilitated by either public authorities or private parties.

Market Demand Curve

A graphical representation of the demand for all consumers in a market for a specific good or service over a range of prices.