Which of the Following Are Accurate Statements Concerning the Role

Multiple Choice

Which of the following are accurate statements concerning the role that restrictive covenants play in reducing moral hazard in financial markets?

A) Covenants reduce moral hazard by restricting borrowers' undesirable behavior.
B) Covenants require that borrowers keep collateral in good condition.
C) Covenants require periodic accounting statements and income reports.
D) All of the above.
E) Only A and B of the above.