Which of the Following Statements Is True

question 77

Multiple Choice

Which of the following statements is true?

• A) Unsecured loans generally involve very high interest rates as a result of the free-rider problem.
• B) Unsecured loans generally involve very high interest rates as a result of adverse selection.
• C) Unsecured loans are no longer made; all loans now must have some form of collateral.
• D) Unsecured loans are only made to individuals with very high net worth because it is the only way to limit the risk.

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Definitions:

Animal Species

A group of living organisms consisting of similar individuals capable of exchanging genes or interbreeding.

Natural Contexts

Environments or situations that occur organically without human intervention, where behaviors and events can be observed in their true form.

Scaffolding

An educational technique that involves providing structure, support, or guidance to learners to help them achieve a higher level of understanding or skill.

Temporary Support

Short-term assistance offered to individuals or systems during periods of change or stress, aiming at stabilization.