Because Borrowers,once They Have a Loan,are More Likely to Invest

question 53

Multiple Choice

Because borrowers,once they have a loan,are more likely to invest in high-risk investment projects,banks face the

• A)adverse selection problem.
• B)lemon problem.
• C)adverse credit risk problem.
• D)moral hazard problem.

---

Definitions:

Queue

A collection or list where elements are added from one end (rear) and removed from the other (front), following a first-in-first-out (FIFO) principle.

Stack

A data structure that follows a last in, first out (LIFO) principle, allowing items to be added and removed from the top.

Postorder Traversal

A way of traversing a tree data structure where each node is visited after its children, often used to delete or free nodes and space.

Binary Search Tree

A data structure that keeps elements in sorted order, allowing for efficient search, addition, and removal operations.