Which of the Following Are Primary Concerns of the Bank

question 50

Multiple Choice

Which of the following are primary concerns of the bank manager?

• A) Maintaining sufficient reserves to minimize the cost to the bank of deposit outflows
• B) Extending loans to borrowers who will pay low interest rates, but who are poor credit risks
• C) Acquiring funds at a relatively high cost, so that profitable lending opportunities can be realized
• D) Maintaining high levels of capital and thus maximizing the returns to the owners.

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Definitions:

Glucagon

A hormone produced by the pancreas that increases blood glucose levels by stimulating the liver to break down glycogen into glucose.

Pancreas

A glandular organ located in the abdomen that plays an essential role in digestion and blood sugar regulation, by secreting digestive enzymes and insulin.

Antidiuretic Hormone

A hormone secreted by the pituitary gland that helps control the balance of water in the body by reducing the amount of water excreted in the urine.

Neural Control

The regulation of body functions and responses through the nervous system, involving the brain, spinal cord, and peripheral nerves.