Use the Following to Answer Questions

question 203

Multiple Choice

Use the following to answer questions .
Exhibit: Reserves, Loans, and Money

-(Exhibit: Reserves, Loans, and Money) If the required reserve ratio is 10% and the market interest rate is 8%, what is Bolton Bank's opportunity cost of holding the excess reserves it is currently holding?

• A) $5.6 million
• B) $3.2 million
• C) $0.8 million
• D) 0; Bolton Bank has no excess reserves.

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Definitions:

Incentive Pay Systems

Compensation methods designed to motivate employees by tying a portion of their earnings to specific performance metrics.

TQM

Total Quality Management; a business management strategy aimed at embedding awareness of quality in all organizational processes.

Survey Feedback

A method of organizational development involving the collection of employee opinions and attitudes, followed by sharing the results with them to initiate change.

Interpersonal Processes

The exchanges and interactions that occur between individuals in a social or professional context.