The Chartering Process Is Especially Designed to Deal with the ________

question 17

Multiple Choice

The chartering process is especially designed to deal with the ________ problem,and regular bank examinations help to reduce the ________ problem.

• A)adverse selection;adverse selection
• B)adverse selection;moral hazard
• C)moral hazard;adverse selection
• D)moral hazard;moral hazard

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Definitions:

Analogies

Analogies are comparisons made between two things that are otherwise unlike, but have some similarities, often used to explain or clarify complex concepts by relating them to more familiar ones.

Induction

A process or method of learning or reasoning by which general principles are derived from specific instances or observations.

General Conclusion

A final statement or decision that summarizes the main points or findings of a discussion, research, or analysis.

Specific Conclusion

A definite or distinct outcome derived from reasoning or argumentation that is tightly focused on a particular issue.