Which of the Following Is NOT a Method Banks Use

question 58

Multiple Choice

Which of the following is NOT a method banks use to deal with adverse selection?

• A) compensating balances
• B) credit rationing
• C) restrictive covenants
• D) all of the above

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Definitions:

Contraband Camps

Settlements where formerly enslaved individuals sought refuge behind Union lines during the American Civil War.

Escaped Slaves

Enslaved individuals who fled from their captors in search of freedom, often facing extreme risks and challenges during their escape.

Morale of the Troops

The confidence, enthusiasm, and discipline of members of the military during an operation or while preparing for battle.

Senator John Crittenden

A 19th-century American politician known for the Crittenden Compromise, an attempt to prevent the Civil War.