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valputin valputin
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Posts: 5754
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8 years ago
To reduce moral hazard problems, banks include restrictive covenants in loan contracts. In order for these restrictive covenants to be effective, banks must also
A) be willing to rewrite the contract if the borrower cannot comply with the restrictions.
B) be prepared to extend the deadline when the borrower needs more time to comply.
C) monitor and enforce them.
D) trust the borrower to do the right thing.
Textbook 
The Economics of Money, Banking and Financial Markets, Business School Edition

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


Edition: 4th
Author:
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Our course uses > The Economics of Money, Banking and Financial Markets
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MeelaMeela
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8 years ago
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valputin Author
wrote...
8 years ago
Correct
Our course uses > The Economics of Money, Banking and Financial Markets
wrote...
8 years ago
Slight Smile Good luck with the rest
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