Unanticipated Moral Hazard Contingencies Can Be Reduced by

question 64

Multiple Choice

Unanticipated moral hazard contingencies can be reduced by

• A)screening.
• B)long-term customer relationships.
• C)specialization in lending.
• D)credit rationing.

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Definitions:

Low Performers

Individuals or employees who do not meet the established performance standards of an organization.

Skill-Based Pay

Rewards people for acquiring and developing job-relevant skills.

Cross-Training

A method in which employees are trained to perform several different functions or roles within an organization, enhancing flexibility and workforce efficiency.

Training Costs

The expenses incurred in the process of developing the skills and knowledge of employees.