Which of the following situations is an example of bank mismanagement?
a. Bank W decreasing its rate of interest below the rate set by the Fed to attract more borrowers
b. Bank X charging high fees on the processing of loans and checks
c. Bank Y refusing loans to all clients who have an asset value below 25,000
d. Bank Z providing loans only to large corporate houses with a high net worth
a
You might also like to view...
If the expected real interest rate in an economy is 6% and the expected inflation rate is 4%, then the nominal interest rate in the economy is:
A) 6%. B) 14%. C) 4%. D) 10%.
A beneficial oil-price shock increases labor demand. What happens to current employment and the real wage rate?
A) Both employment and the real wage rate would increase. B) Both employment and the real wage rate would decrease. C) Employment would increase and the real wage would decrease. D) Employment would decrease and the real wage would increase.