17-69 When Comparing Banks and Mutual Funds

question 9

Multiple Choice

17-69 When comparing banks and mutual funds,

• A)mutual funds have more liquidity risk than banks because all shareholders share the loss of value on a pro rata basis.
• B)mutual funds have less liquidity risk than banks because all shareholders share the loss of value on a pro rata basis.
• C)mutual funds have more liquidity risk than banks because all shareholders have the ability to withdraw their money on a first-come first basis.
• D)mutual funds have less liquidity risk than banks because all shareholders have the ability to withdraw their money on a first-come first basis.
• E)mutual funds have the same liquidity risk as banks because both shareholders and depositors share the fall in the loss of value on a pro rata basis.

---

Definitions:

OD Efforts

Initiatives taken as part of Organization Development, aimed at improving organizational effectiveness, health, and capacity through planned interventions.

Blue-Collar Workers

Employees who perform manual labor or work in production, manufacturing, and maintenance sectors, typically requiring physical work.

Supervisors

Individuals who oversee the work of others, often with authority to hire, fire, and make decisions related to employee performance.

OD Strategy

Organizational Development Strategy involves a planned, organization-wide effort to increase an organization's effectiveness and viability.