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.

---

Definitions:

Marketing Mix

A combination of factors that can be controlled by a company to influence consumers to purchase its products, often referred to as the 4Ps: Product, Price, Promotion, and Place.

Industry Profitability

Industry profitability is a measure of the average income and margins businesses within a specific sector can expect to earn.

Competitive Rivalry

The ongoing, competitive struggle between companies in the same industry or market to win over customers, increase market share, and achieve dominant status.

Substitute Products

Goods or services that can be used in place of each other, offering consumers an alternative choice.