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Venture capital firms attempt to overcome the principal agent problem by investing only in industries with high profit rates. changing high interest rates on loans.
Venture capital firms attempt to overcome the principal agent problem by investing only in industries with high profit rates. changing high interest rates on loans. holding large equity stakes in the firms they invest in. avoiding investing in common stock. The use of collateral allows banks to change higher interest rates on loans. makes it more costly for borrowers to take advantage of their asymmetric information. makes it more costly for lenders to take advantage of their asymmetric information. has important tax implication for both borrowers and lenders. Bank capital is equal to the value of the capital originally invested in the bank its owners. the value of everything the bank owns. the difference between the value of the bank's assets and the value of its liabilities. the value of the buildings and other physical assets the bank owns. Which of the following is NOT a bank liability? checkable deposits CD_s mortgage loans Borrowings from the Federal R
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