Multiple Choice
Which one of the following statements about relationship-based banking is correct?
A) There is a danger that the bank will end with monopolistic power given the information it collects on the firm.
B) Relationship-based banking typically makes firms more dependent on internal funds.
C) A close, long-term relationship between a bank and a firm will increase asymmetry of information between the two.
D) None of the above.
Correct Answer:
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