Which of the Following Is a Technique Lenders Use to Alleviate

question 20

Multiple Choice

Which of the following is a technique lenders use to alleviate the moral hazard problem?

• A) checking credit ratings
• B) monitoring borrower activity
• C) both of the above
• D) none of the above

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Definitions:

Hippocampus

A neural center that is located in the limbic system; helps process explicit memories for storage.

Cerebellum

The “little brain” at the rear of the brainstem; functions include some nonverbal learning, processing sensory input, and coordinating movement output and balance.

Cerebellum

A region of the brain that plays an important role in motor control. It also contributes to coordination, precision, and accurate timing.

Reticular Formation

A network of neurons in the brainstem involved in arousal and consciousness.