How banks and borrowers benefit from relationship banking

Reference no: EM131305146

1. What is net worth? What role does net worth play in lenders' attempts to reduce adverse selection problems?

2. What is relationship banking? How do banks and borrowers benefit from relationship banking?

3. What is the principal-agent problem? How is the principal-agent problem related to the concept of moral hazard?

Reference no: EM131305146

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