Question 10 Which of the following is NOT benefit of an incentive compatible contract? 1.Car drivers may get a lower insurance premium because of a larger deductible. 2. Some borrowers may be able to get loan only because the contract reassures the lender of repayment. 3. The Principal can spend less monitoring and share some of this savings with the Agent. 4. Fewer transactions between Principals and Agents will take place.

Question 10 Which of the following is NOT benefit of an incentive compatible contract? 1.Car drivers may get a lower insurance premium because of a larger deductible. 2. Some borrowers may be able to get loan only because the contract reassures the lender of repayment. 3. The Principal can spend less monitoring and share some of this savings with the Agent. 4. Fewer transactions between Principals and Agents will take place.

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter5: Managing Checking And Savings Accounts

Section: Chapter Questions

Problem 4LTAI

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