531,223 views
41 votes
41 votes
Anna withdrew funds from her bank and purchased 500 shares of ABC stock at the recommendation of her broker. Which one of these parties meets the definition of a delegated monitor

User Hasnat Safder
by
2.9k points

1 Answer

19 votes
19 votes

Answer:

The answer is "Anna's broker"

Step-by-step explanation:

The delegated monitoring would be a financial intermediary as it borrows from small investors and uses uncontrolled liabilities (deposits) (whose loans it monitors).

In opposition to individuals that monitor the buyer independently, it relates to delegating the job of watching with such a bank and therefore satisfies the description of delegated monitor from Anna broker parties.

User Fredefl
by
2.5k points