Question: 1.6 How do adverse selection and moral hazard affect the bank lending function? How can banks minimise such problems? 1.7 How are banks affected by

1.6 How do adverse selection and moral hazard affect the bank

1.6 How do adverse selection and moral hazard affect the bank lending function? How can banks minimise such problems? 1.7 How are banks affected by agency problems? 1.8 Describe the main theories put forward to explain the existence of financial intermediaries. 1.9 Explain the concept of delegated monitoring

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