Customers Who Have Long-Term Relationships with Banks

question 7

Multiple Choice

Customers who have long-term relationships with banks

• A)pose particular problems with respect to adverse selection.
• B)pose particular problems with respect to moral hazard.
• C)often obtain credit at a lower rate or with fewer restrictions.
• D)are more likely to default or violate restrictive covenants.

---

Definitions:

Imitate Facial Actions

The act of replicating or mimicking the facial expressions of others, a fundamental aspect of nonverbal communication and empathy development.

Minutes of Age

Refers to the very short period after a living being's birth, highlighting the immediate time frame.

Attachment Formation

The process during early childhood by which infants develop close and enduring emotional bonds with their caregivers, crucial for healthy social and emotional development.

Months of Age

A measurement of an individual's age in months, often used to track development milestones in infants and young children.