Which of the Following Is NOT a Reason for Using

question 27

Multiple Choice

Which of the following is NOT a reason for using a bad bank as a vehicle to add value in the loan sale process?

• A)Contracts for managers can be created to maximize the incentives to generate enhanced values from loan sales.
• B)The bad bank enables bad assets to be managed by loan workout specialists.
• C)The bad bank does not need to be concerned about liquidity needs since it does not have any deposits.
• D)Moving the bad loans off the balance sheet of the good bank will improve the markets perception, and thus performance, of the good bank.
• E)The good bank-bad bank structure increases information asymmetries regarding the value of the good bank's assets.

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Definitions:

SPSS

A comprehensive and flexible statistical software package used for data management and analysis in social science research.

Confidence Interval

A range of values, derived from sample data, that is likely to contain the true population parameter with a specified level of confidence.

Academic Performance

The level of achievement or proficiency demonstrated by a student in educational endeavors, often measured by grades or standardized test scores.

Simple Linear Regression

A statistical method for examining the linear relationship between two continuous variables.