To Reduce the Incentives of Financial Institution Managers to Engage

question 95

Multiple Choice

To reduce the incentives of financial institution managers to engage in excessive risk taking regulators might require that bonuses be ________.

• A) paid immediately
• B) paid after several years
• C) paid after several years only if the firm remains in good financial health
• D) paid in the form of stock options

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Definitions:

Holder in Due Course

A person who possesses a negotiable instrument for payment in good faith and without knowledge that it is overdue or has been dishonored.

Advanced Shipping Notice

A document sent to a customer in advance of a shipment, detailing the contents and delivery details of the forthcoming delivery.

Universal Product Code

A barcode symbology that is widely used in the United States and other countries for tracking trade items in stores.

Vendor-managed Inventory

A supply chain arrangement where the vendor is responsible for maintaining the inventory levels of their products at the buyer's premises, optimizing stock levels and reducing out-of-stocks.