(I)Banks Are Financial Intermediaries That Accept Deposits and Make Loans

question 21

Multiple Choice

(I) Banks are financial intermediaries that accept deposits and make loans.
(II) The term "banks" includes firms such as commercial banks,savings and loan associations,mutual savings banks,credit unions,insurance companies,and pension funds.

• A) (I) is true, (II) false.
• B) (I) is false, (II) true.
• C) Both are true.
• D) Both are false.

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Definitions:

Equity Theory

A theory in social psychology that explains how individuals perceive fairness in distribution of resources, leading to satisfaction or dissatisfaction based on perceived inequalities.

Underpayment

The situation in which an individual or group receives less compensation than is fair or deserved for their work or services.

Overpayment

The situation in which an individual or entity receives more money than is due for services provided or work done.

Monetary Incentives

Financial rewards given to employees or stakeholders to motivate performance or behaviors aligned with organizational objectives.