The World Bank will primarily make
A) short-term loans for investment projects that are relatively safe.
B) long-term loans for investment projects that are relatively risky.
C) short-term loans for investment projects which might not receive private financial support.
D) long-term in nature for investment projects which might not receive private financial support.
Question 2
Which of the following is NOT a reason that people tend to deposit their funds with banks rather than lend their funds directly to other individuals?
A) asymmetric information problems B) adverse selection problems
C) moral hazard problems D) liquidity problems
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Example of Reconciling a Bank Statement Cont.
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