The benefit of establishing a long-term relationship with your banker is to: A. Reduce the likely of moral hazard B. Diminish problems with asymmetric information C. Improve loan terms for the customer D. All of the above

The benefit of establishing a long-term relationship with your banker is to: A. Reduce the likely of moral hazard B. Diminish problems with asymmetric information C. Improve loan terms for the customer D. All of the above

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter16: Information, Risk, And Insurance

Section: Chapter Questions

Problem 8RQ: What are some ways that someone looking for a loan might reassure a bank that is faced with...

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QUESTION 6

The benefit of establishing a long-term relationship with your banker is to:

A.

Reduce the likely of moral hazard

B.

Diminish problems with asymmetric information

C.

Improve loan terms for the customer

D.

All of the above

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A banker is a person that involves in receiving and depositing the customer’s money in the banks.

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