Which of the Following Is NOT True of Adverse Selection

question 30

Multiple Choice

Which of the following is NOT true of adverse selection?

• A)It would not exist in a world of perfect information.
• B)It arises because borrowers typically know more than lenders.
• C)It describes a lender's problem of distinguishing the good-risk applicants from the bad-risk applicants.
• D)It describes a lender's problem in verifying borrowers are using their funds as intended.

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Definitions:

Humanistic

Pertaining to a psychological perspective focusing on individual free will, self-fulfillment, and the concept of self-actualization.

Theoretical Approach

A method or strategy used in research and practice that is grounded in theory and guides the processes of inquiry and interpretation.

Carl Rogers

An influential American psychologist who founded client-centered therapy and emphasized the importance of self-actualization and unconditional positive regard.

Unconditional

Something given or done without requiring anything in return or without stipulations or conditions attached.