When Banks Use Specialized Resources to Monitor Borrowers, They Are

question 518

Multiple Choice

When banks use specialized resources to monitor borrowers, they are

• A) pooling risk.
• B) lending to only high-risk borrowers.
• C) minimizing the cost of assessing borrowersʹ creditworthiness.
• D) lowering the cost of creating liquidity.

---

Definitions:

Settlement Week

An ADR technique in which the court clears its docket of all business except settlement hearings.

Arbitration Session

A meeting where a neutral third party hears disputes from involved parties and makes a decision to resolve the issue.

Collective Science Court

A hypothetical or proposed tribunal designed to adjudicate disputes and issues specifically within the scientific community, emphasizing collective expertise.

Technology

The application of scientific knowledge for practical purposes, especially in industry.