​For a Mortgage Lender That Makes Mortgage Loans to Borrowers,which

question 66

Multiple Choice

​For a mortgage lender that makes mortgage loans to borrowers,which one of the following would be an example of adverse selection?

• A)​After the loan has been made,individuals become careless with their finances
• B)Individuals most likely to default are the ones most likely to apply for the loan
• C)Borrowers investing their loan proceeds differently than the bank requires
• D)​None of the above

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