Ask Question
4 October, 20:46

To reduce moral hazard problems, banks include restrictive covenants in loan contracts. In order for these restrictive covenants to be effective, banks must also be: a) prepared to extend the deadline when the borrower needs more time to comply. b) trust the borrower to do the right thing. c) monitor and enforce them. d) be willing to rewrite the contract if the borrower cannot comply with the restrictions.

+5
Answers (1)
  1. 4 October, 23:05
    0
    C. Monitor and enforce them.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “To reduce moral hazard problems, banks include restrictive covenants in loan contracts. In order for these restrictive covenants to be ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers