A Bank That Wants to Monitor the Check Payment Practices

question 2

Multiple Choice

A bank that wants to monitor the check payment practices of its commercial borrowers,so that moral hazard can be reduced,will require borrowers to

• A)place a bank officer on their board of directors.
• B)place a corporate officer on the bank's board of directors.
• C)keep compensating balances in a checking account at the bank.
• D)purchase the bank's CDs.

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Definitions:

Avoid Conflict

The practice or strategy of preventing or minimizing disputes, disagreements, or confrontations.

Positive Thinking

A mental attitude focusing on optimism and constructive outcomes, which can influence one's stress level and overall health.

Conflict Resolution

The process of resolving disputes or conflicts through communication, negotiation, or other means.

One Side

Typically refers to considering or taking into account only one aspect or perspective of a situation or argument, often leading to a biased or incomplete understanding.