The Problem for Lenders, That Highest Risk Borrowers Tend to Be

question 53

Multiple Choice

The problem for lenders, that highest risk borrowers tend to be the most eager to take loans, is an example of

• A) adverse selection.
• B) moral hazard.
• C) both of the above.
• D) neither of the above.

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Definitions:

Radical Republicans

A faction within the US Republican Party after the Civil War that advocated for the strict Reconstruction policies against the Southern states and supported civil rights for freed slaves.

Senate

One of the two chambers of the United States Congress, consisting of senators elected from each state, responsible for making and passing federal laws.

African-American Suffrage

The right of African Americans to vote, a struggle that culminated in the 1965 Voting Rights Act, which aimed to overcome legal barriers at the state and local levels that prevented African Americans from exercising their right to vote under the 15th Amendment.

Radical Republicans

A faction within the Republican Party after the Civil War that advocated for strict Reconstruction policies, civil rights for freed slaves, and punitive measures against the Southern states.