The Problem Faced by the Lender That the Borrower May

question 91

Multiple Choice

The problem faced by the lender that the borrower may take on additional risk after receiving the loan is called

• A)adverse selection.
• B)moral hazard.
• C)transactions costs.
• D)diversification.

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Definitions:

Property Crime

A category of crime that involves the theft, damage, or illegal possession of someone else's property.

Fiscal Crime

Illegal activities affecting government revenue, including tax evasion, fraud, and embezzlement.

Burglary

Breaking and entering onto the property of another with the intent to commit a felony.

Property Crime

Crimes involving the theft of personal property or damage to property, such as burglary, larceny, arson, or vandalism.