Regular Bank Examinations and Restrictions on Asset Holdings Help to Indirectly

question 60

Multiple Choice

Regular bank examinations and restrictions on asset holdings help to indirectly reduce the ________ problem because,given fewer opportunities to take on risk,risk-prone entrepreneurs will be discouraged from entering the banking industry.

• A)moral hazard
• B)adverse selection
• C)ex post shirking
• D)post-contractual opportunism

Grasp the foundational concepts of avoidance conditioning and punishment, including Mowrer's two-factor theory.

Explain the factors influencing the effectiveness of punishment and behavior suppression.

Appreciate the application of behavioral theories to real-world behavior modification.

Understand the implications of reward and punishment anticipation in behavior modification.

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Definitions:

Guidelines

A set of principles or advice designed to regulate behavior or assist with decision-making in specific situations.

Content

The substance or material dealt with in a speech, literary work, document, or other mediums, often distinguished from its form.

Duty Of Competence

The obligation of professionals to have the required knowledge and skill to perform their tasks effectively and according to their profession's standards.

Adequate Attorney Supervision

The process of ensuring that attorneys provide proper guidance and oversight to their legal staff, maintaining professional standards.