Which of the Following Is Correct

question 9

Multiple Choice

Which of the following is correct?

• A) Savers develop expertise in evaluating creditworthiness.
• B) Borrowers develop expertise in structuring loans.
• C) Borrowers develop expertise in enforcing loan contracts.
• D) Banks reduce the transaction costs of channeling savings to creditworthy borrowers.
• E) Banks increase the transaction costs of channeling savings to creditworthy borrowers.

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Definitions:

Shared Value

A concept that businesses can generate economic value in a way that also produces value for society by addressing its challenges.

Economic Value

The measurement of the benefit provided by a good or service to an economic agent.

Society

A community of people living together in a more or less ordered community, sharing common traditions, institutions, and values.

Participative Leadership

A leadership style where decision-making is shared among group members, fostering engagement and collaboration.