1-Moral hazard or its reduction explain the following except: O A. Covenants requiring borrowers to provide information periodically. O B. Collateral requirements for loans. O C. The Enron and Tyco scandals O D. The success of zero commission trading.

2-

Your friend visited the country of Sibelia. He reports to you that one

can always legally exchange 1 euro for exactly 2.50 Sibelian dollars.

What type of exchange rate system does Sibelia most probably

have?

O A. Managed float.

O B. Hard peg.

O C. Free float.

O D.

Soft peg.