One Way for Banks to Reduce the Principal-Agent Problems Associated

question 134

Multiple Choice

One way for banks to reduce the principal-agent problems associated with trading activities is to

• A)set limits on the total amount of a traders' transactions.
• B)make sure that the person conducting the trades is also the person responsible for recording the transactions.
• C)encourage traders to take on more risk if the potential rewards are higher.
• D)reduce the regulations on the traders so that they have more flexibility in conducting trades.

Learn the guidelines for effective leadership and essential qualities of followers.

Understand the procedural steps in civil litigation and the strategic decisions lawyers must make.

Grasp the foundational concepts of personal jurisdiction and minimum contact requirements in U.S. law.

Distinguish between the roles and jurisdictions of various courts within the U.S. legal system, including state, federal, and appellate courts.

---

Definitions:

Investment

The purchase of goods that are not consumed today but are used in the future to create wealth.

Google Stock

Equity shares of Alphabet Inc., the parent company of Google, representing ownership in one of the world's leading technology firms.

Exxon Mobil

An American multinational oil and gas corporation, one of the world's largest publicly traded energy providers and chemical manufacturers.

Consumer Goods

Goods produced for present consumption.