The Board of Directors Is Ultimately Responsible for All Large

question 37

True/False

The board of directors is ultimately responsible for all large investment decisions.

---

Definitions:

Open Market

A freely competitive market in which any buyer or seller may participate and where transactions are not restrictively regulated by government.

Interest Rates

The percentage of a loan that is charged to the borrower as interest, usually presented as an annual rate of the remaining loan balance.

Excess Reserves

Banks' reserves that are greater than the minimum regulatory requirement, not needed to fulfill lending demands.

Reserve Requirement

The reserve requirement is a central bank regulation that sets the minimum amount of reserves that must be held by a commercial bank.