Collateral Requirements Lessen the Consequences of ________ Because the Collateral

question 103

Multiple Choice

Collateral requirements lessen the consequences of ________ because the collateral reduces the lender's losses in the case of a loan default and it reduces ________ because the borrower has more to lose from a default.

• A)adverse selection;moral hazard
• B)moral hazard;adverse selection
• C)adverse selection;diversification
• D)diversification;moral hazard

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Definitions:

Data Collection Methods

The various approaches and tools used to gather information or data for analysis in research settings, can include surveys, interviews, observations, and experiments.

Graphs

Visual representations of data designed to show comparative information or trends over time, typically using a series of points, lines, bars, or slices.

Alternating Treatments Design

An experimental design in behavior analysis that allows the comparison of two or more interventions by alternating them in a rapid succession to observe their effects on behavior.

Functional Relation

The relationship between a specific behavior and the environmental conditions that reliably influences the occurrence of this behavior.