If a Borrower's Net Worth Increases

question 92

Multiple Choice

If a borrower's net worth increases:

• A) the likelihood of moral hazard also increases.
• B) the borrowers are likely to want to take less risk.
• C) the moral hazard risk for the potential lenders decreases.
• D) the supply of loans decreases.

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Definitions:

Left Ventricle

The lower left chamber of the heart responsible for pumping oxygenated blood to tissues all over the body.

Valve

A structure in a hollow organ or passage that allows fluid to flow in one direction but prevents its return.

Abbreviation

A shortened form of a word or phrase used for convenience, often comprising the initial letters of the words.

Abbreviation

A shortened form of a word or phrase used to save space or avoid repetition.