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valputin valputin
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8 years ago
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.
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
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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
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8 years ago
Thank you
Our course uses > The Economics of Money, Banking and Financial Markets
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#3
8 years ago
You're very welcome, valputin
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