A Bank Provides

question 12

Multiple Choice

A bank provides:

• A) liquidity; that is, access to cash when and where you want it.
• B) liquidity; that is, it connects buyers to sellers to ease saving and borrowing.
• C) risk diversification; that is, access to cash when and where you want it.
• D) risk diversification; that is, connecting buyers and sellers to ease saving and borrowing.

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Definitions:

Equity Theory

A theory in social psychology that explains how individuals perceive the fairness of their input-to-output ratios in comparison to others, affecting their motivation and satisfaction.

Feelings of Inequity

Feelings of inequity occur when individuals perceive that they are not being treated fairly in comparison to others, which can affect motivation and satisfaction.

Negative Inequities

Situations in which individuals perceive that their contribution to an endeavor is not being fairly compensated.

Equitably Administered

Managed or governed in a fair and impartial manner, ensuring justice and equality in treatment and services.