Bank X Had a Reputation for Asking Few Questions When

question 301

Multiple Choice

Bank X had a reputation for asking few questions when it provided loans. Five years later, the majority of the loans were not repaid. This is because the bank had failed to address the

• A) adverse selection problem.
• B) moral hazard problem.
• C) contrary selection problem.
• D) free-rider problem.

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Definitions:

Networking

Involves building and maintaining relationships with people who can support professional or personal growth.

ROPES

An acronym often standing for "Review Of Personal Employment Situation," used in human resources and management training.

Protégé

A person who receives guidance, support, and mentoring from a more experienced or influential mentor.

Proactive Behaviours

Actions taken by individuals that are anticipatory, change-oriented, and self-initiated to improve situations or achieve desired outcomes.