A Bank That Wants to Monitor the Check Payment Practices

question 133

Multiple Choice

A bank that wants to monitor the check payment practices of its commercial borrowers,so that moral hazard can be prevented,will require borrowers to

• A) place a bank officer on their board of directors.
• B) place a corporate officer on the bank's board of directors.
• C) keep compensating balances in a checking account at the bank.
• D) purchase the bank's CDs.

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Definitions:

Antibiotics

Medicines used to fight bacterial infections by killing or inhibiting the growth of bacteria.

Chlamydia

A common sexually transmitted infection caused by the bacterium Chlamydia trachomatis, often asymptomatic.

Spermicidal Jelly

A contraceptive substance that destroys sperm, used to reduce the likelihood of pregnancy during sexual intercourse.

Male Condom

A contraceptive device made of latex, polyisoprene, or polyurethane worn over the penis to prevent semen from entering the partner's body.