One of the Reasons Why There Is Conflicting Evidence About

question 3

Multiple Choice

One of the reasons why there is conflicting evidence about the benefits from close bank-relationships is that ...

• A)Close bank ties only exist in countries with weak disclosure and financial data of low quality.
• B)Banks only lend to young and risky firms that justify higher interest rates.
• C)Banks tend to smooth out the interest rates they charge to firms over time.
• D)None of the above.

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Definitions:

Neutrality

The state of not supporting or helping either side in a conflict, disagreement, etc.; impartiality.

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