Question
Which type of financial institution(s) should be best able to control moral hazard arising from the principle-agent problem: a. venture capital company b. commercial bank
Which type of financial institution(s) should be best able to control moral hazard arising from the principle-agent problem:
a. venture capital company
b. commercial bank
c. pension fund
d. investment bank
e. Two of these institutions.
f. None of these institutions.
Increases in the following factors that will increase the demand for bonds include:
a. wealth of investors.
b. liquidity of bonds relative to alternative assets.
c. expected returns on bonds relative to alternative assets.
d. risk of bonds relative to alternative assets.
e. all but one but one factor.
f. two of these factors.
g. all of these factors.
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