Financial Intermediaries Have Developed Expertise in Monitoring the Parties They

question 3

Multiple Choice

Financial intermediaries have developed expertise in monitoring the parties they lend to,thus reducing losses due to

• A)moral hazard.
• B)adverse selection.
• C)free-riding.
• D)economies of scope.

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Definitions:

Social Status

The position or rank of a person or group within the hierarchy of a society, which can influence their access to resources and opportunities.

Criminal Offence

An act or behavior that violates the law and is punishable by the state or other authorities.

Political Office

A position of authority or service involving responsibility to the public, especially within the government.

Durkheim

A pioneering French sociologist, Emile Durkheim, known for his foundational contributions to the field of sociology, including his studies on social cohesion and the role of religion in society.