Demand Deposits in a Commercial Bank Are Considered Part of the Bank's

question 13

Multiple Choice

Demand deposits in a commercial bank are considered part of the bank's

• A) assets.
• B) liabilities.
• C) net exposure.
• D) ordinary ratio.
• E) fractional multiplier.

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Definitions:

Agency Problem

A conflict of interest between a company's management and its shareholders, where the management may act in their own best interests rather than those of the shareholders.

Shareholders

Individuals or entities that own shares of stock in a corporation, giving them ownership interests and possibly rights to dividends and voting.

Management

Management involves the organization and coordination of activities to achieve defined objectives, typically within a business setting.

Corporate Executives

Senior managers or high-level administrators in charge of directing and overseeing a corporation's activities.