Which of the Following Statements Concerning the Mutual Form of Ownership

question 76

Multiple Choice

Which of the following statements concerning the mutual form of ownership of savings banks are true?

• A) The mutual form of ownership accentuates the principal-agent problem that exists in corporations.
• B) More capital is available, contributing to the safety of mutual savings banks compared to other banking organizations.
• C) Managers of mutual savings banks are more risk averse than in the corporate form, because the value of their ownership does not increase if the firm does well.
• D) All of the above are true.
• E) Only A and B of the above are true.

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Definitions:

Shaded Area

In graphical representations, a portion of the graph that is marked off or colored differently to highlight a particular region or to denote a statistical significance.

Distribution

Describes the way values in a dataset are spread or dispersed across the range of possible values.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values from their mean.

Normally Distributed

Describes a distribution that is symmetrical, bell-shaped, and characterized by data equally spread around the mean, implying many measurement observations fall close to the average.