Which of the Following Statements Is True

question 17

Multiple Choice

Which of the following statements is true?

• A)Loan contracts are bank debt contracts that generally have longer term to maturity than bond contracts.
• B)The longer term nature of loans allows the financial intermediary to exercise more monitoring power and control over the borrower.
• C)When bank loan contracts are sufficiently long term, the banker almost becomes like an insider to the firm.
• D)None of the listed options are correct.

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Definitions:

Stability

The state of being steady and unchanging, often used to describe economic, political, or social conditions that are consistently reliable and free from upheaval or disorder.

Panama Canal Zone

The small strip of land on either side of the Panama Canal. The Canal Zone was under U.S. control from 1903 to 1979 as a result of Theodore Roosevelt’s assistance in engineering a coup in Colombia that established Panama’s independence.

International Progressivism

A political and social movement that advocates for reforms on a global scale, focusing on issues like environmental protection, human rights, and economic inequality.

Liberal Internationalism

A foreign policy doctrine that argues for the role of cooperation and democracy in international relations, often associated with the promotion of global peace and justice.