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    Financial Institutions Management Study Set 2
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    Exam 1: Why Are Financial Institutions Special
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    Agency Costs Are Costs Relating to the Risk That the Owners
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Agency Costs Are Costs Relating to the Risk That the Owners

Question 27

Question 27

True/False

Agency costs are costs relating to the risk that the owners and managers of firms that receive savers' funds will take action with those funds contrary to the best interests of the saver.

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