Solved

Regular Bank Examinations and Restrictions on Asset Holdings Indirectly Help

Question 6

Multiple Choice

Regular bank examinations and restrictions on asset holdings indirectly help to ________ the adverse selection problem because,given fewer opportunities to take on risk,risk-prone entrepreneurs will be ________ from entering the banking industry.


A) increase; encouraged
B) increase; discouraged
C) reduce; encouraged
D) reduce; discouraged

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions