Which of the Following Is a Technique Lenders Use to Alleviate

question 59

Multiple Choice

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

• A) specialized lending
• B) diversified lending
• C) requiring collateral
• D) all of the above

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Definitions:

Inner City

Typically refers to areas near the city center, often characterized by high population density, economic and social challenges, but also vibrant community life.

Poor

A socioeconomic status characterized by a lack of financial resources and access to basic life necessities.

Meth

A powerful, addictive stimulant drug, also known as methamphetamine, that affects the central nervous system.

Powder Cocaine

A fine, white crystalline drug obtained from coca leaves, often snorted, that can cause euphoria and addiction; it's contrasted with crack cocaine, a more potent form that's smoked.