Banks Hold Reserves

question 50

Multiple Choice

Banks hold reserves:

• A)to earn interest.
• B)to increase profits.
• C)only because the government requires them to hold reserves.
• D)to meet depositor withdrawals and payments.

---

Definitions:

Coercion Techniques

Methods used to persuade or force someone to do something by using threats or intimidation.

Transactional Leaders

Leaders who focus on the role of supervision, organization, and group performance, often relying on a system of rewards and penalties to motivate employees.

Efficiency

The effectiveness of using the least possible amount of resources to achieve the highest level of performance or output.

Employee Contingency

The application of contingency approaches to managing employees, recognizing that there is no one best way to manage all employees in all situations.