Which of the Following Statements Is True

question 77

Multiple Choice

Which of the following statements is true?

• A) Unsecured loans generally involve very high interest rates as a result of the free-rider problem.
• B) Unsecured loans generally involve very high interest rates as a result of adverse selection.
• C) Unsecured loans are no longer made; all loans now must have some form of collateral.
• D) Unsecured loans are only made to individuals with very high net worth because it is the only way to limit the risk.

---

Definitions:

Genetic Factors

Elements of an organism's genetic makeup that influence its characteristics, traits, and susceptibility to certain conditions or diseases.

Environmental Factors

External elements, including social, geographical, and climatic factors, that affect individuals and their behavior.

Twin Studies

Research that analyzes the similarities and differences between twins to understand the roles of genetics and environment in human development.

Adoption Studies

Research studies that compare adopted children to their biological and adoptive families to understand the influence of genetic versus environmental factors on development.