The structure of Wall Street compensation was criticized on the ground that ________
a) the current cash bonus system discouraged risk-taking in the financial system
b) the compensation for bankers and traders on Wall Street included a nominal annual bonus
c) the current cash bonus system provided strong incentives for short-term performance but weak incentives for long-term performance
d) deferred incentive compensation with a higher base salary multiplied "material risk" on the bank
C
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Which of the following is not a true statement about Objectivism?
A. Its critics label the decision rule overly judgmental and individualistic. B. The advancement of rational self-interest under the decision rule always and necessarily comes at the expense of the interests of others. C. The decision rule focuses on the decision-maker developing into the best, most enlightened person the decision-maker can be. D. The decision rule promotes free-market decision-making in business.
The annualized interest rate that is realized when not taking advantage of a possible cash discount is known as:
A) High cost financing B) Low cost financing C) The effective interest rate D) The flat rate