When Banks Use Specialised Resources to Monitor Borrowers, They Are

question 52

Multiple Choice

When banks use specialised resources to monitor borrowers, they are

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

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Definitions:

Compound Proposition

A statement formed by combining two or more propositions using logical connectors (like and, or, not), resulting in a proposition with a more complex structure.

Complete Propositions

Statements or assertions that convey a complete idea, capable of being true or false, and usually containing both a subject and a predicate.

Inclusive Sense

Refers to an understanding or interpretation that aims to encompass or include all relevant aspects or elements.

Disjunction

A compound proposition containing two or more component propositions (the disjuncts) and asserting that at least one of them is true.