Which of the Following Best Characterizes the Lending Strategy of Banks

question 100

Multiple Choice

Which of the following best characterizes the lending strategy of banks?

• A)Banks make most their profits from account fees.
• B)Banks lend mostly to large and familiar companies rather than smaller local firms.
• C)Banks charge borrowers a slightly lower interest rate than they pay to depositors.
• D)Banks lend money both for investment and consumption purposes.

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Definitions:

Expectancy Theory

A motivational theory suggesting that individuals are likely to act in ways based on the expected outcomes of their actions.

Incentive Hike

An increase in rewards or benefits offered to motivate and encourage desired behaviors or performance among individuals or groups.

Coaching

The process of training, guiding, or advising an individual or team to achieve their personal or professional goals.

Performance Improvement

Efforts or strategies aimed at increasing the effectiveness, efficiency, or output of an organization or individual.