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    Macroeconomics and the Financial System
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    Exam 15: Introduction to the Financial System
  5. Question
    Banks Reduce by
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Banks Reduce by

Question 36

Question 36

Multiple Choice

Banks reduce by .


A) adverse selection; requiring covenants
B) moral hazard; diversification
C) adverse selection; risk sharing
D) moral hazard; monitoring borrower behavior

Correct Answer:

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