Collateral Requirements Lessen the Consequences of ________ Because the Collateral

question 103

Multiple Choice

Collateral requirements lessen the consequences of ________ because the collateral reduces the lender's losses in the case of a loan default and it reduces ________ because the borrower has more to lose from a default.

• A)adverse selection;moral hazard
• B)moral hazard;adverse selection
• C)adverse selection;diversification
• D)diversification;moral hazard

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Shortcut Menu

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