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Of the following methods that banks might use to reduce moral hazard problems, the one not legally p

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Of the following methods that banks might use to reduce moral hazard problems, the one not legally p

Of the following methods that banks might use to reduce moral hazard problems, the one not legally permitted in the United States is the
A) requirement that individuals provide detailed credit histories to bank loan officers.
B) requirement that firms place on their board of directors an officer from the bank.
C) inclusion of restrictive covenants in loan contracts.
D) requirement that firms keep compensating balances at the banks from which they obtain their loans.

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The Economics of Money, Banking and Financial Markets, Business School Edition

Edition: 4^th

Author: Mishkin

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Our course uses > The Economics of Money, Banking and Financial Markets

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valputin Author

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8 years ago

Thank you

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Our course uses > The Economics of Money, Banking and Financial Markets

Meela

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8 years ago

You're very welcome, valputin

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