When the Proper Tone of Corporate Governance Is in Place

question 35

Multiple Choice

When the proper tone of corporate governance is in place:

• A)Encouraging ethical conduct is unnecessary.
• B)Effectiveness is not improved.
• C)Risk of fraud tends to increase.
• D)Proper stewardship of assets increases.
• TEST BANK - CHAPTER 11- TRUE / FALSE

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Definitions:

Fed Funds Rate

The interest rate at which depository institutions lend reserve balances to other depository institutions overnight, a vital monetary policy tool used by the Federal Reserve.

Discount Rate

The rate at which the central bank lends money to commercial banks and other financial institutions through its discount window.

Open Market Operations

Open Market Operations involve the buying and selling of government securities by a central bank to control the money supply and interest rates in the economy.

Tight Monetary Policy

A central bank strategy aiming to slow economic growth by increasing interest rates and reducing the quantity of money in circulation.