1-5 If not done by FIs,the process of monitoring the actions of borrowers would reduce the attractiveness and increase the risk of investing in corporate debt and equity by individuals.

Question

Quizplus · Accepted Answer

Monitoring the actions of borrowers is an important part of risk management in corporate lending. Without such monitoring, individual investors may be less likely to invest in these securities due to increased risk.

1-5 If Not Done by FIs,the Process of Monitoring the Actions