Question: Solutions to the moral hazard problem in debt contracts include ______. I. Low net worth II. Monitoring and enforcement of restrictive covenants III. Greater reliance

Solutions to the moral hazard problem in debt contracts include ______.

I. Low net worth

II. Monitoring and enforcement of restrictive covenants

III. Greater reliance on equity contracts and less on debt contracts

IV. High net worth

A. II, III, and IV

B. II and IV

C. I, II, and III

D. II and III

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