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Due to the sequential service constraint and the undefined maturity features, the bank A. can cost less liquidate the loans to satisfy withdrawals by informed

Due to the sequential service constraint and the undefined maturity features, the bank A. can cost less liquidate the loans to satisfy withdrawals by informed depositors who may have detected a fraud B. will be deterred from engaging in behaviors that give rise to moral hazard problems C. can cost less raise money to satisfy withdrawals by informed depositors who may have detected a fraud D. will be encouraged to undertake riskier projects to increase shareholders' wealth

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