Requiring a Large Net Worth on the Part of an Applicant

question 19

Multiple Choice

Requiring a large net worth on the part of an applicant is one way lenders treat the problem of:

• A) free-riders.
• B) adverse selection.
• C) moral hazard.
• D) the Lemons market.

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Definitions:

35mm Gauge

A standard film gauge most commonly used for both analog photography and motion pictures, measuring 35 millimeters in width.

Sound on Film

A process where audio is recorded onto the same strip of film as the images, synchronizing sound and picture.

Color Film

A type of film that includes chemical elements for producing images in color, as opposed to solely in shades of gray (black and white films).

Black Maria

The first movie studio: a crude, hot, cramped shack in New Jersey where Thomas Edison and his staff began making movies. So named because it resembled a late nineteenth century police paddy wagon, for which the slang term “Black Maria” was first used.