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:

Behavioural Archaeology

Behavioural archaeology studies past human activities through material remains, examining how people use objects and alter their environments.

Evolutionary Psychology

A theoretical approach in psychology that examines human thoughts and behaviors through the lens of natural selection and adaptation.

Sociometrics

A quantitative method for measuring social relationships, often used to identify social structures, patterns, and influences within groups.

Psychometrics

The field of study concerned with the theory and technique of educational and psychological measurement, including the development of tests and questionnaires.