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.

---

Definitions:

Time-Out

A behavioral intervention technique where an individual is temporarily removed from an environment to decrease undesirable behaviors.

Cell Phone

A portable electronic device that combines telecommunications and computing functions, allowing for voice and data communication, as well as various applications.

Operant Conditioning

Shaping behavior through rewards and punishments.

Classical Conditioning

Associating two things not normally associated with each other.