Depository Banks Borrow from Depositors Primarily on a _____ Basis

question 161

Multiple Choice

Depository banks borrow from depositors primarily on a _____ basis and lend to others on a _____ basis.

• A)short-term; long-term
• B)long-term; long-term
• C)short-term; short-term
• D)long-term; short-term

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Definitions:

Organizational Structure

The system used to define a hierarchy within an organization, specifying roles, responsibilities, and the flow of information.

External Uncertainty

The unpredictability in an organization's external environment that can affect its operations and performance, including economic, social, and political factors.

Internal Uncertainty

Uncertainty that originates within an organization due to factors like unclear objectives, lack of managerial direction, or unpredictable environments.

Classical Organization

A theory or model of management that focuses on efficiency, hierarchy, and strict roles within an organization to achieve its goals.