Question
MUST ANSWER ALL 3 for thumbs up 1. Which of the following statements is not true regarding agency problems between a bank's managers and its
MUST ANSWER ALL 3 for thumbs up
1. Which of the following statements is not true regarding agency problems between a bank's managers and its shareholders?
a. Decisions that result in growth may be intended to increase employee salaries.
b. The compensation to a bank's loan officers may be tied to loan volume, which encourages the loan department to provide loans without concern about risk
c. Managers are rarely tempted to make decisions that are in their own best interests rather than shareholder interests
d. To prevent agency problems, some banks provide stock as compensation to managers.
e. All of these choices are true with respect to agency problems.
2.
If a bank obtains a relatively large portion of its funds from conventional demand deposits, interest expenses should be relatively ________, while its noninterest expenses should be relatively ________.
| |||
| |||
| |||
| |||
|
3. Which of the following is not an advantage of a bank acquisition?
| |||
| |||
| |||
| |||
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started