The Objective of Bank Management Is to

question 14

Multiple Choice

The objective of bank management is to

• A)maximize stockholders' profits by making risky investments and giving loans to borrowers who will pay the highest interest rates.
• B)refuse to make risky loans and make loans only to the safest borrowers.
• C)invest in U.S.government securities and make loans only to established businesses.
• D)strike the appropriate balance between the attraction of bank profits and the need for bank safety.

---

Definitions:

Market Price

The current price at which a goods or service can be bought or sold in a marketplace, influenced by supply and demand.

Market Price

The price of a commodity when sold in a given market, determined by supply and demand.

Entry of Firms

Refers to the process by which new companies enter an industry, increasing competition and potentially leading to lower prices and innovation.

Market Price

The present cost at which a service or asset is available for purchase or sale in a specific market.