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Explain what types of policies a central bank can implement to reduce the interest rate.
Defaulting
Failing to meet the legal obligations of a loan, typically by not making the required payments.
Health Insurance Market
The sector of the economy providing plans and services for individuals to cover healthcare expenses.
Adverse Selection
A situation in markets where buyers and sellers have asymmetric information, leading potentially to a selection of undesirable outcomes, such as in insurance markets where those most likely to need coverage are also most likely to purchase it.
Life Insurance Companies
Financial institutions that provide compensations to beneficiaries upon the insured individual's death, offering financial security and risk management.
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