How Does Goldman Sachs as a Firm Manage Issues Around

question 7

Multiple Choice

How does Goldman Sachs as a firm manage issues around hidden information and hidden action of the firm's traders (agents) ?

• A)Monitoring at the department level only
• B)Employee incentive based pay in the form of bonuses
• C)A 30-member risk committee to examine the value at risk
• D)Objective alignment between the firm and shareholders
• E)A hedging program

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