A bank agrees to lend Holly money on the condition Holly maintain a balance of $1,000 in her savingsaccount with the bank. This is an example of a bank using a

Group of answer choices:

deductible as a way to mitigate the problem of moral hazard.

restrictive covenant as a way to mitigate the problem of moral hazard.

compensating balance as a way to mitigate the problem of moral hazard.

compensating balance as a way to mitigate the problem of adverse selection.