The Use of Borrowed Funds to Supplement Existing Funds for Purposes

question 75

Multiple Choice

The use of borrowed funds to supplement existing funds for purposes of investment is called:

• A) arbitrage.
• B) leverage.
• C) convergence.
• D) intermediation.

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Definitions:

Political Behavior

Actions by individuals or groups within an organization that are aimed at influencing the distribution of advantages and disadvantages.

Organizational Politics

The use of power and social networking within an organization to achieve changes that benefit the individual or the organization.

Coercive Power

a form of power that is based on the ability to deliver punishments or impose penalties for noncompliance with expectations or directives.

Reward Power

The capability of an individual to offer positive incentives, such as promotions or bonuses, to influence others’ behaviors or attitudes.