Which of the Following Is an Example of Screening

question 83

Multiple Choice

Which of the following is an example of screening?

• A)A lender checks a loan applicants credit history.
• B)When an employee purchases group life insurance without taking a physical exam, she knows more about her health than does the insurance company.
• C)When someone is considering buying a used car from a dealership, the seller knows the repair history of the car but the potential buyer does not.
• D)All of the above are correct.

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Definitions:

Inflation Rate

The rate at which the general level of prices for goods and services is rising, and, consequently, the purchasing power of currency is falling.

Borrowers

Individuals or entities that take out loans from financial institutions or other sources, committing to repay them over a specified period, often with interest.

Lenders

Individuals, organizations, or institutions that provide funds to borrowers under the agreement that the funds will be repaid with interest at a later date.

Fixed Incomes

Financial incomes that are set at a particular figure and do not fluctuate in the short term, such as bonds or pensions.