Multiple Choice
Financial intermediaries are able to act as delegated monitors for individual savers because
A) other investors are unable to gain a free ride on their monitoring efforts.
B) borrowers consider this role to be traditional for financial intermediaries and are willing to put up with it.
C) the federal government has granted them waivers from laws protecting privacy.
D) they employ a vast network of private detectives to carry out their monitoring role.
Correct Answer:
Verified
Correct Answer:
Verified
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