The Creation of Savings Plans Such as Savings Deposits and Money

question 57

Multiple Choice

The creation of savings plans such as savings deposits and money market mutual accounts that allow easy transfer of funds between interest-earning assets and checkable deposits tends to

• A) lower the cost of holding money.
• B) reduce the demand for money.
• C) increase the demand for money.
• D) increase the risk of holding money.

---

Definitions:

Participative Leadership

A leadership style wherein the leader includes team members in the decision-making process, ensuring their opinions and suggestions are considered.

Supportive Leadership

A leadership style that focuses on providing encouragement, resources, and assistance to employees.

Contingency Theory

Fred Fiedler’s theory that states that the association between leadership orientation and group effectiveness is contingent on how favourable the situation is for exerting influence.

LPC Measurement

A tool used in the Fiedler contingency model to assess a leader's least preferred coworker, indicating their leadership style.