Banks Are Referred to as Intermediaries Because They

question 138

Multiple Choice

Banks are referred to as intermediaries because they

• A)are part of the money supply process.
• B)earn a profit.
• C)charge interest on a loan.
• D)channel funds from depositors to borrowers.
• E)provide a way for people to save their money.

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Definitions:

Job Enlargement

Increases task variety by combining into one job two or more tasks previously assigned to separate workers.

Task Variety

The degree to which a job involves a range of different activities requiring different skills.

Separate Workers

The process or policy of keeping workers apart from each other, possibly based on roles, tasks, or certain conditions.

Abdication

The act of formally relinquishing responsibility or authority over something.