Suppose that a demand deposit contract is not tradable and has a feature of a debt contract. Then,

a$.$

acting in the best interests of the shareholders, the bank$’$s managers have an incentive to engage in an asset$-$substitution scheme.

b$.$

the moral hazard problem is aggravated by the fact the deposit is not tradable.

c$.$

the bank has an incentive not to monitor the borrowers to whom it has extended loans.

d$.$

all of the above

e$.$

A and B only