Multiple Choice
Which of the following statements is true?
A) Loan contracts are bank debt contracts that generally have longer term to maturity than bond contracts.
B) The longer term nature of loans allows the financial intermediary to exercise more monitoring power and control over the borrower.
C) When bank loan contracts are sufficiently long term, the banker almost becomes like an insider to the firm.
D) None of the listed options are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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