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:

Law

A system of rules that are created and enforced through social or governmental institutions to regulate behavior.

Social Responsibility

The ethical framework suggesting that individuals and companies have an obligation to act for the benefit of society at large.

Views

Opinions or perspectives held by individuals.

Tradition Influence

The impact that long-established beliefs, customs, and practices have on individuals or societies.