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    Managerial Economics Study Set 1
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    Exam 18: The Problem of Moral Hazard
  5. Question
    ​A Bank Can Decrease the Degree of Moral Hazard If
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​A Bank Can Decrease the Degree of Moral Hazard If

Question 46

Question 46

Multiple Choice

​A bank can decrease the degree of moral hazard if it


A) ​Monitors the borrowers behaviors
B) Placing covenants on the loan
C) Both of the above
D) ​None of the above

Correct Answer:

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