We talked about how one key function of commercial banks is to monitor and evaluate borrowers credit risk. which of these is a good example of something banks use to assure that they actually do this function? A commercial banks use a lot of short term or demandable debt funding so top managers want to avoid loan losses that might trigger a bank run commercial banks hold lots of treasury and federal agency debt securities which don't require extensive credit evaluation and monitoring see the biggest commercial banks are also investment banks so they're underwriting of corporate debt and equities gives them insights that are helpful throughout their loan portfolios the commercial banks give their top managers lots of stock options which gives them more incentive to avoid credit losses so as to maximize that options upside