One reason China has been able to grow so rapidly even though its financial development is still in its early stages is ________.
A) the high savings rate of around 40 percent
B) the shift of labor to the agricultural sector
C) the stringent enforcement of financial contracts
D) the ease of obtaining high-quality information about creditors
Correct Answer:
Verified
Q74: Debt contracts
A)are agreements by the borrowers to
Q76: A debt contract is incentive compatible
A)if the
Q82: Solutions to the moral hazard problem include
A)low
Q85: Although restrictive covenants can potentially reduce moral
Q86: A key finding of the economic analysis
Q87: Why does the free-rider problem occur in
Q88: For restrictive covenants to help reduce the
Q101: Explain the difference between net worth and
Q107: Explain how high net worth and collateral
Q108: How do restrictive covenants reduce moral hazard
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents