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:

Erik Erikson's Theory

A psychoanalytic theory of psychological development comprising eight stages from infancy to adulthood, with each stage presenting a crisis that must be resolved.

Sense Of Guilt

A psychological state that arises from the awareness of having done something wrong or harmed someone, leading to feelings of remorse and the desire to make amends.

Inevitable Crisis

A situation or period of intense difficulty or danger that is unavoidable or certain to happen.

Externalize

To project one's own feelings, thoughts, or responses onto someone or something else.