Private Information-Collection Firms Fail to Eliminate the Adverse Selection Problem

question 72

Multiple Choice

Private information-collection firms fail to eliminate the adverse selection problem because

• A)the law does not allow them to disclose private information about the creditworthiness of firms.
• B)they do not monitor borrowers after loans have been made.
• C)some investors who do not pay for their services will still profit from them.
• D)most companies refuse to provide them with any information.