If Bad Credit Risks Are the Ones Who Most Actively

question 66

Multiple Choice

If bad credit risks are the ones who most actively seek loans then financial intermediaries face the problem of

• A)moral hazard.
• B)adverse selection.
• C)free-riding.
• D)costly state verification.

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Definitions:

Multiple Employers

Engaging multiple employers refers to a work arrangement where an individual simultaneously holds employment positions with more than one employer, often to diversify income sources or gain varied work experiences.

Flextime

Flexible working hours in which employees customize their own work hours within limits established by management.

Traditional 9:00

Typically refers to the conventional start time for work or business operations, signaling the beginning of the workday at 9:00 AM.

Flextime

A flexible work arrangement allowing employees to choose their working hours within agreed limits.