In Making a Term That Ends in -Um Plural,you Should

question 69

Multiple Choice

In making a term that ends in -um plural,you should:

• A)keep the -um and add an -a
• B)drop the -um and add an -a
• C)drop the -um and add -ta
• D)drop the -um and add a -y

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Definitions:

Adverse Selection

A term describing a situation where due to asymmetric information between buyers and sellers, the party with more information (often the seller) takes advantage of the other, leading to a market with higher risks and lower quality products.

Moral Hazard

Moral hazard occurs when a party is more likely to take risks because the negative consequences of the risk will be borne by another party.

Present Value

The present-day worth of a forthcoming sum of money or cash inflows, assessed at an agreed-upon return rate.

Interest Rate

The percentage charged on a loan or paid on savings, indicating the cost of borrowing or the reward for saving.