Which of the Following Statements Is Correct

question 168

Multiple Choice

Which of the following statements is correct?

• A)The Federal funds rate is derived based on the prime rate.
• B)The Federal funds rate is the rate banks charge their most creditworthy customers.
• C)The discount rate is the rate banks charge one another on overnight loans.
• D)The prime rate involves longer, more risky loans than the Federal funds rate.

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Definitions:

Leader-Member Exchange Model

A theory that emphasizes the two-way relationship between supervisors and subordinates, highlighting the importance of dyadic relationships.

Sales Target Determination

The process of setting specific objectives for a sales team to achieve within a fixed time frame, often based on historical data, market analysis, and company goals.

Crisis Management

The process by which an organization deals with a disruptive and unexpected event that threatens to harm the organization or its stakeholders.

Leader-Member Exchange Theory

A leadership approach focusing on the dyadic relationships between leaders and each of their followers, proposing that the quality of these relationships influences outcomes for the leader, the member, and the organization.