Unanticipated Moral Hazard Contingencies Can Be Reduced by

question 64

Multiple Choice

Unanticipated moral hazard contingencies can be reduced by

• A)screening.
• B)long-term customer relationships.
• C)specialization in lending.
• D)credit rationing.

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Definitions:

Book Value Per Share

The equity available to common shareholders divided by the number of outstanding shares, indicating the value of a company's shares based on its financial statements.

Net Income

The total earnings of a company after subtracting all expenses, including taxes and operational costs, from its total revenue.

Dividend Payout Ratio

A financial metric that calculates the percentage of net income distributed to shareholders in the form of dividends.

Total Stockholders' Equity

The total net worth of a company according to its balance sheet, calculated as total assets minus total liabilities.