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The View That Depositors Hire Banks to Analyze the Financial

Question 18

Multiple Choice

The view that depositors hire banks to analyze the financial condition of prospective borrowers and continually evaluate the condition of outstanding loans is referred to as:


A) delegated monitoring.
B) the concept of financial intermediation.
C) the liquidity function in banking.
D) market imperfection theory.
E) the efficiency contribution of banking.

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