1. If a bank has $200,000 of checkable deposits, a required reserve ratio of 20% and it holds $80,000 in reserves, then the maximum deposit outflow it can sustain without altering its balance sheet is ___.

2. A debt contract is incentive compatible, ____.

3. Since they require less monitoring for firms, ___ contracts are used more frequently than ___ contracts to raise capital.

4. When $1 million is deposited at a bank, the required reserve ratio is 20%, and the bank chooses not to hold any excess reserves but makes loans instead, then, in the banks final balance sheet, ___.

5. The chartering process is especially designed to deal with the ___ problem ,and regular bank examinations help to reduce the ___ problem.