Which of the Following Is a Mechanism Used by DI

question 81

Multiple Choice

Which of the following is a mechanism used by DI managers to reduce demand deposit withdrawal rates?

• A)Implicit interest payments.
• B)Minimum balance requirements.
• C)Explicit interest payments.
• D)All of the options.

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Definitions:

Full Disclosure

The requirement or practice of disclosing all relevant and significant information to a transaction's parties, often used in financial and legal contexts.

Business Judgment Rule

A rule under which courts will not hold corporate officers and directors liable for honest mistakes of judgment and bad business decisions that were made in good faith.

Negligence Or Mismanagement

The failure to exercise the care or oversight required, resulting in harm or loss.

Duty Of Care

A legal obligation imposed on individuals or organizations to adhere to a standard of reasonable care while performing any acts that could foreseeably harm others.