When Banks Use Specialized Resources to Monitor Borrowers,they Are

question 423

Multiple Choice

When banks use specialized resources to monitor borrowers,they are

• A) pooling risk.
• B) lowering the cost of creating liquidity.
• C) minimizing the cost of assessing borrowers' creditworthiness.
• D) lending to only high-risk borrowers.

---

Definitions:

High-viscosity

Describes a fluid that is thick and resistant to flow, often characteristic of some types of lava.

Lava Tube

A long, tubular opening under the crust of solidified lava and representing an active or partially emptied subsurface channel of lava.

Tube-shaped Cave

A type of cave formed primarily by the underground channeling of water, often characterized by long, narrow passageways.

Insulate

To protect something from heat, electricity, or sound by surrounding it with a material that reduces or prevents the transmission of heat, electricity, or sound.