Harun Comes to You with a Request for Funds for a Project

question 106

Multiple Choice

Harun comes to you with a request for funds for a project. He reminds you that company policy supports his position. He is using the tactic of _______.

• A) rational persuasion
• B) coalitions
• C) consultation
• D) legitimacy
• E) pressure

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Definitions:

Primary Reserves

Funds that financial institutions must hold in physical form, such as cash in vaults or deposits with central banks, as a measure of liquidity and financial stability.

Secondary Reserves

Liquid assets held by financial institutions as backup funds for unforeseen needs, not directly utilized in lending or investment.

Required Reserves

The minimum amount of funds that banks are required to hold in reserve against deposits, as mandated by central banks.

Money Supply

The total amount of monetary assets available in an economy at any given time.