Which of the Following Are Primary Concerns of a Bank

question 75

Multiple Choice

Which of the following are primary concerns of a bank manager?

• A)maintaining sufficient reserves to minimize the cost to the bank of deposit outflows
• B)extending loans to borrowers who will pay high interest rates, but who are also good credit risks
• C)acquiring funds at a relatively low cost, so that profitable lending opportunities can be realized
• D)all of the above

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Definitions:

Production Cost

The total expenses incurred in the process of producing or manufacturing goods, including materials, labor, and overhead costs.

Rental Payments

Monetary payments made periodically by a tenant to a landlord in exchange for the use of a property or equipment.

Society's Viewpoint

The collective perceptions, attitudes, and values of a community or society regarding various issues.

Marginal Revenue Product (MRP)

The change in a firm’s total revenue when it employs 1 additional unit of a resource (the quantity of all other resources employed remaining constant); equal to the change in total revenue divided by the change in the quantity of the resource employed.