Which of the Following Is a Mechanism Used by FI

question 32

Multiple Choice

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

• A)implicit interest payments
• B)minimum balance requirements
• C)explicit interest payments
• D)There is no way to mitigate withdrawal risk.

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Definitions:

Workplace Culture

The environment created by the collective behaviors, values, policies, and attitudes that shape a company's employees and work dynamics.

Career Development

The progression of an individual’s job path over their lifetime, including education, training, and work experiences, to achieve personal career goals.

Compelling Employment

Employment opportunities or offers that are highly attractive or persuasive, often because of excellent benefits, workplace culture, or career advancement possibilities.

Labour Market

A marketplace where employers find workers and workers find jobs; it is characterized by supply and demand for labor.