According to Early Leader-Member Exchange (LMX) Theory, Which of the Following

question 24

Multiple Choice

According to early leader-member exchange (LMX) theory, which of the following is false?

• A) The out-group has less influence with the leader than does the in-group.
• B) The leader usually expects extra duties from out-group members.
• C) In-group members are chosen on the basis of compatibility with the leader.
• D) Out-group members may not want to be in-group members.

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Definitions:

Hong Kong Dollars

The legal currency of Hong Kong, used in financial transactions within the region.

U.S. Dollars

The official currency of the United States, widely used as a benchmark in global financial transactions.

Uncovered Interest Rate Parity

A theory suggesting that the difference in interest rates between two countries is equal to the expected change in exchange rates between those countries' currencies.

Nominal Risk-Free Return

The return on an investment with zero risk in nominal terms, not adjusting for inflation.