Which of the following statements is TRUE? Select one: O A. Covenants in a loan agreement will encourage borrower's actions which will decrease the probability of repayment of the loan OB. None of the other options is correct O C. Compensating balance is a tax paid by a borrower to the government O D. Agile Corporation, which has an Altman Z-score is 4.73, may be granted a loan since its default probability is low OE. Other factors remaining the same, secured loans are riskier than unsecured loans for the bank

Which of the following statements is TRUE? Select one: A. Covenants in a loan agreement will encourage borrower's actions which will decrease the probability of repayment of the loan B. None of the other options is correct C. Compensating balance is a tax paid by a borrower to the government D. Agile Corporation, which has an Altman Z-score is 4.73 , may be granted a loan since its default probability is low E. Other factors remaining the same, secured loans are riskier than unsecured loans for the bank