Which of the Following Are Principles of Sound Banking Behavior

question 16

Multiple Choice

Which of the following are principles of sound banking behavior?

• A)Avoid an undue concentration of loans to single activities
• B)Control mismatches between assets and liabilities
• C)Expand cautiously into unfamiliar activities
• D)All of the above

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Definitions:

Consumer Surplus

The difference in the amount consumers are prepared to pay versus what they actually pay for goods or services.

Trucks

Large motor vehicles designed for transporting goods by road.

Government Revenue

Income received by the government from taxes and other sources used to fund public services and projects.

Tariff

A tax imposed by a government on goods and services imported from other countries, used to control trade and protect domestic industries.