Regular Bank Examinations and Restrictions on Asset Holdings Help to Indirectly

question 60

Multiple Choice

Regular bank examinations and restrictions on asset holdings help to indirectly reduce the ________ problem because,given fewer opportunities to take on risk,risk-prone entrepreneurs will be discouraged from entering the banking industry.

• A)moral hazard
• B)adverse selection
• C)ex post shirking
• D)post-contractual opportunism

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Definitions:

Social Responsibility

A business's duty to make decisions that benefit society at large, beyond its owners, including ethical, environmental, and philanthropic considerations.

Target Market

A specific group of consumers at whom a company aims its products and marketing efforts, based on shared characteristics or needs.

Marketing Metric

Quantitative measures used to evaluate, compare, and track the effectiveness or performance of marketing activities.

Marketing Activity

Actions or tasks undertaken by a company to promote its products or services and engage with its target market.