Which of the Following Elements Should Be Included in an FI's

question 33

Multiple Choice

Which of the following elements should be included in an FI's liquidity management strategy?

• A)Clearly defined managerial responsibilities and controls.
• B)A formal plan to minimise excess liquidity.
• C)An agreement to predominantly focus on stored liquidity management.
• D)Clearly defined managerial responsibilities and controls and a formal plan to minimise excess liquidity only.

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Definitions:

Bureaucratic Inertia

The tendency of bureaucratic organizations to resist change and maintain the status quo due to their complex structures and rules.

Bureaucracies

are complex organizational structures designed to manage and administer the policies, rules, and regulations of larger institutions or governments through a hierarchical system of authority.

Authority Structures

Refer to the systems and frameworks through which power and authority are organized, distributed, and executed within a society or organization.

Democratic Leadership

Offers more guidance than the laissez-faire variety but less control than the authoritarian type. Democratic leaders try to include all group members in the decision-making process, taking the best ideas from the group and molding them into a strategy with which all can identify. Outside of crisis situations, democratic leadership is usually the most effective leadership style.