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    Intermediate Accounting
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    Exam 1: Fundamentals of Financial Accounting Theory
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    Discuss Two Ways in Which a Bank Can Mitigate the Problem
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Discuss Two Ways in Which a Bank Can Mitigate the Problem

Question 16

Question 16

Essay

Discuss two ways in which a bank can mitigate the problem of moral hazard when lending money to a company.

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The lender can request certain covenants...

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