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:

Stiffness

A physical condition in which muscles feel tight and movement is restricted, often resulting from exercise, injury, or long periods of inactivity.

Females

Refers to the sex of an organism, or a part of an organism, that produces non-mobile ova (egg cells) and can typically bear offspring or produce eggs.

Flexibility

The ability of joints to move through their full range of motion.

Sacrum

A large, triangular bone at the base of the spine and at the upper and back part of the pelvic cavity, where it is inserted like a wedge between the two hip bones.