Community Bank Jeffrey Is the Training Manager for the Community Bank in Bank

question 87

Multiple Choice

Community Bank
Jeffrey is the training manager for the Community Bank in Maryland. Jeffrey has developed a training program for all new employees that emphasizes understanding the basics of money. Jeffrey and the bank's management believe that if the employees understand the basics of money, they can utilize the information in their own personal finances as well as guide and answer questions from bank customers.
The bank recently hired Laila. She was hired at a high-level position because she brought with her extensive bank management experience. Laila's responsibilities included making sure that the reserve requirement would always be met and keeping track of the interest rate that the Federal Reserve System charged for loans to member banks.
-Refer to Community Bank. One of Laila's responsibilities is keeping track of the interest rate that the Federal Reserve System charges for loans to member banks. Which of the following should Laila be tracking?

• A) Federal rate
• B) FRS rate
• C) Reserve rate
• D) Discount rate
• E) System rate

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Definitions:

Cumulative Voting

A voting system in which shareholders can allocate their votes in any proportion among candidates for a company's board of directors.

Minority Participation

Minority Participation refers to the involvement or investment in a project or company by individuals or groups who do not hold a controlling stake.

Dividend Growth Model

A valuation method used to estimate the value of a stock by assuming constant dividends that grow at a steady rate.

Right of First Refusal

A contractual right that gives its holder the option to enter a business transaction with the owner of something, before the owner is entitled to enter into that transaction with a third party.