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:

Variable-Ratio

A schedule of reinforcement where a response is rewarded after an unpredictable number of responses, often used in behavior modification.

State Lottery Tickets

Tickets sold by a governmental entity, allowing participants a chance to win monetary prizes through a random drawing process.

Resistance To Extinction

The persistence of learned behavior or response patterns even after the removal of the reinforcing stimulus.

Continuous Reinforcement

A learning process where a behavior is reinforced each time it occurs, leading to faster learning but quicker extinction once reinforcement stops.