Refer to the Information Below

question 144

Multiple Choice

Refer to the information below.When the desired reserve ratio is 10 percent, the money creating potential of this single bank is:

• A)zero dollars.
• B)$6,000
• C)$30,000
• D)$60,000

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Definitions:

Weber's Bureaucracy

A concept developed by sociologist Max Weber that describes a structured, organized, and hierarchical form of organization, characterized by formal procedures, division of labor, and a clear hierarchy of authority.

Theory X

A management theory assuming employees are inherently lazy and will avoid work if they can, necessitating control and coercion.

Directive Relationships

Relationships characterized by one party giving instructions or directions to another within an organizational hierarchy.

Command-and-control

A management style characterized by hierarchical authority, strict discipline, and a focus on compliance and order.