The Process in Which Financial Institutions Accept Savings from Businesses

question 254

Multiple Choice

The process in which financial institutions accept savings from businesses, households, and governments and lend the funds to other businesses, households, and governments is called

• A) central banking system.
• B) financial intermediation.
• C) moral hazard.
• D) adverse selection.

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Definitions:

U.S. Sentencing Commission's

An independent agency of the federal judicial branch of the United States that develops sentencing guidelines and policies for the federal courts, with the aim of reducing sentencing disparities and promoting transparency and proportionality in sentencing.

Ethical Compliance Programs

Initiatives within organizations designed to ensure behavior and practices adhere to both legal standards and ethical norms.

Institutionalization

The process of integrating or embedding practices, norms, or values into an organization or society so they become stable and expected behaviors.

Organizational Culture

The shared values, beliefs, and norms that define how a company's employees interact, make decisions, and handle external relations.