18-100 Which of the Following Is a Mechanism Used by DI

question 62

Multiple Choice

18-100 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 above.
• E)There is no way to mitigate withdrawal risk.

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Definitions:

Objective-and-Task Method

A budgeting approach where the budget is set based on the cost of specific tasks or objectives that must be accomplished to achieve marketing goals.

Percentage-of-Sales Method

A budgeting technique for marketing or advertising that bases the budget on a fixed percentage of the sales revenue.

Affordable Method

A promotion-mix budgeting strategy in which firms set their promotion budget based on what they believe they can afford.

Promotional Budget

The allocation of financial resources dedicated to marketing and advertising activities over a specified period.