If a Financial Institution Pays an Interest Rate of 1

question 194

Multiple Choice

If a financial institution pays an interest rate of 1% to savers and charges borrowers 3%, they earn a profit of _____

• A) 1 percent.
• B) 2 percent.
• C) 3 percent.
• D) 4 percent.
• E) 5 percent.

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Definitions:

Job Analysis

The process of gathering, examining, and interpreting data about a job's tasks and responsibilities to determine what is required of an individual in that role.

Scientific-Management

A management theory focusing on improving economic efficiency, especially labor productivity, by scientifically studying work methods and setting performance standards.

Individual Initiative

The action of taking the first step or move without prompt from others, showcasing autonomy and proactivity.

Transactional Leader

A leadership style focused on supervision, organization, and performance, where reward and punishment are used as key motivators.