If a Lender Checks Credit Reports on Individuals Before Mailing

question 53

Multiple Choice

If a lender checks credit reports on individuals before mailing out loan offers, it is most likely trying to avoid

• A) moral hazard.
• B) moral dilemma.
• C) adverse selection.
• D) adverse reaction.

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Definitions:

External Environmental Condition

External factors outside an organization that can impact its performance, including economic, social, and regulatory conditions.

Union Steward

An elected representative of workers in a unionized environment who acts as an intermediary between the workforce and management.

Grievance Procedure

A formalized process that employees can use to voice and resolve workplace disputes, concerns, or complaints, often involving several steps including mediation and arbitration.

Bargaining Unit

A group of employees with a clear and identifiable community of interests who are represented by a single labor union in collective bargaining and labor negotiations.