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    Question

    With the expected downturn in the economy, a bank

    anticipates its bad loans to increase by the end of the year. The bank decides to create extra provisions during the year. This is which type of a decision made by the bank?
    A Reactive Correct Answer Incorrect Answer
    B Proactive Correct Answer Incorrect Answer
    C Intuitive Correct Answer Incorrect Answer
    D Programmed Correct Answer Incorrect Answer
    E Unsystematic Correct Answer Incorrect Answer

    Solution

    A proactive approach focuses on eliminating problems before they have a chance to appear and a reactive approach is based on responding to events after they have happened. A proactive decision-making style isone in which you examine the decision to be made, identify and evaluate actions you might take, select an action, and take responsibility for the consequences of this action. Teens that use a proactive decision-making style do so by using The Responsible Decision-Making Model.

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