Discuss Two Ways in Which a Bank Can Mitigate the Problem

question 16

Essay

Discuss two ways in which a bank can mitigate the problem of moral hazard when lending money to a company.

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Definitions:

William Lloyd Garrison

An American abolitionist who was prominent in the anti-slavery movement and is well known for founding and editing the abolitionist newspaper "The Liberator."

Free African-Americans

Individuals of African descent living in the United States who were not enslaved and had certain legal rights, particularly before the Civil War in both the North and the South.

Ghana

A country located along the Gulf of Guinea and the Atlantic Ocean, in West Africa, known for its diverse ecosystems, rich cultural heritage, and historical significance.