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To minimize asymmetric information problems, financial intermediaries can A) conduct
thorough credit evaluations of prospective borrowers before approval of a loan B) monitor credit
performance of borrowers throughout the life of the loan C) include provisions within the loan
agreement to businesses to enforce compliance with stated use of funds D) All of the above

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To minimize asymmetric information problems- financial intermediaries.pdf

  • 1. To minimize asymmetric information problems, financial intermediaries can A) conduct thorough credit evaluations of prospective borrowers before approval of a loan B) monitor credit performance of borrowers throughout the life of the loan C) include provisions within the loan agreement to businesses to enforce compliance with stated use of funds D) All of the above