A Bank That Wants to Monitor the Check Payment Practices

question 133

Multiple Choice

A bank that wants to monitor the check payment practices of its commercial borrowers,so that moral hazard can be prevented,will require borrowers to

• A) place a bank officer on their board of directors.
• B) place a corporate officer on the bank's board of directors.
• C) keep compensating balances in a checking account at the bank.
• D) purchase the bank's CDs.

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Definitions:

Fringe Benefits

Additional benefits, beyond a salary or wage, offered by employers to employees, such as health insurance, retirement plans, and paid time off.

Non-wage Compensation

Benefits provided to employees in forms other than direct pay, such as health insurance, retirement plans, and paid time off.

Workforce

The collective group of individuals engaged in work or employment, contributing to the productivity of an economy or a specific organization.

360º Feedback Method

A performance appraisal system where an employee's performance is evaluated by feedback collected from peers, subordinates, superiors, and sometimes clients.