Holly Goes to Her Bank to Take Out a Loan

Holly goes to her bank to take out a loan, and the bank agrees to the loan on the condition that Holly maintain a balance of $1,000 in her savings account with the bank. This is an example of a bank using a

A) deductible as a way to mitigate the problem of moral hazard.
B) compensating balance as a way to mitigate the problem of moral hazard.
C) compensating balance as a way to mitigate the problem of adverse selection.
D) restrictive covenant as a way to mitigate the problem of moral hazard.