The Principal-Agent Problem That Exists for Bank Trading Activities Can

question 33

Multiple Choice

The principal-agent problem that exists for bank trading activities can be reduced through

• A)creation of internal controls that combine trading activities with bookkeeping.
• B)creation of internal controls that separate trading activities from bookkeeping.
• C)elimination of regulation of banking.
• D)elimination of internal controls.

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Definitions:

Intimate

Characterized by a close, familiar, and affectionate personal relationship that involves deep knowledge and companionship.

Nurturing

The act of nurturing and promoting the advancement or progress of an individual or entity.

Metropolitan

Relating to a large urban area, typically encompassing both the city and its surrounding suburbs.

Sex Chromosomes

Chromosomes that determine the biological sex of an organism, with human females typically having two X chromosomes and males one X and one Y chromosome.