Which of the Following Statements Is True

question 19

Multiple Choice

Which of the following statements is true?

• A)The more diversified a financial intermediary, the higher the probability that it will default on its obligations and the more risky and illiquid the claims.
• B)The less diversified a financial intermediary, the higher the probability that it will default on its obligations and the more risky and illiquid the claims.
• C)The more diversified a financial intermediary, the lower the probability that it will default on its obligations and the more risky but also the more liquid the claims.
• D)The more diversified a financial intermediary, the higher the probability that it will default on its obligations and the more risky but also the more liquid the claims.

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Definitions:

Organizational Strategy

A plan of action designed to achieve long-term or overall goals and objectives of an organization.

Structure

The arrangement of and relations between the parts or elements of something complex.

Standardizing Work

The process of developing and implementing uniform procedures for tasks to increase efficiency and consistency.

Job Descriptions

A formal document that outlines the essential responsibilities, qualifications, and duties of a specific job position, serving as a foundation for hiring, performance evaluations, and role clarity.