The objective of bank management is to
a. maximize stockholders' profits by making risky investments and giving loans to borrowers who will pay the highest interest rates.
b. refuse to make risky loans and make loans only to the safest borrowers.
c. invest in U.S. government securities and make loans only to established businesses.
d. strike the appropriate balance between the attraction of bank profits and the need for bank safety.
d
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A new U.S. tariff on Mexican avocados would be likely to: a. raise the price of avocados to U.S. consumers
b. increase U.S. consumption of domestically produced avocados. c. increase total U.S. consumption of avocados. d. do both a. and b.
A consumption function is a statement that shows the relationship between interest rates and consumption
Indicate whether the statement is true or false