Which of the Following Refers to Restrictions in Loan and Bond

question 106

Multiple Choice

Which of the following refers to restrictions in loan and bond agreements that encourage or forbid certain actions by the borrower?

• A)Mortality rates.
• B)RAROC.
• C)Implicit contracts.
• D)Covenants.
• E)Credit rationing.

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Definitions:

Moral Standards

Moral standards are principles that govern an individual's behavior or the conducting of an activity, especially regarding right and wrong.