Banks G and H Are the Same Size and Have

question 35

Multiple Choice

Banks G and H are the same size and have similar operations. Bank G holds the minimum level of capital and Bank H holds a higher level of capital. Bank G's return on equity is probably ____ volatile than that of Bank H. Bank G's beta is probably ____ than that of Bank H.

• A)less; lower
• B)less; higher
• C)more; higher
• D)more; lower

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Definitions:

Ingratiation

The deliberate use of deception to increase a target person's liking for us in hopes of gaining tangible benefits that the target person controls. Techniques such as flattery, expressing agreement with the target person's attitudes, and exaggerating one's own admirable qualities may be used.

Supplication

An impression management tactic that involves convincing a target person that you are needy and deserving.

Save Face

Refers to the efforts or actions taken by an individual or group to prevent embarrassment or maintain their reputation and dignity in front of others.

Social Rule

Conventions or guidelines that dictate the expected and acceptable behavior within a society or community.