If Bad Credit Risks Are the Ones Who Most Actively

question 93

Multiple Choice

If bad credit risks are the ones who most actively seek loans and,therefore,receive them from financial intermediaries,then financial intermediaries face the problem of

• A)moral hazard.
• B)adverse selection.
• C)free-riding.
• D)costly state verification.

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Definitions:

Social System

A complex network of relationships, institutions, norms, and practices that work together to fulfill society's needs and maintain order.

Chilly Climate

A term used to describe an environment, often academic or workplace, that is unwelcoming and marginalizes certain groups.

Higher Education

Post-secondary education provided by universities and colleges that leads to an academic degree or professional qualification.

Gendered Enrolment

The phenomenon where enrollment rates in education or specific fields of study are significantly influenced by gender.