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How Does Collateral Help to Reduce the Adverse Selection Problem

question 59

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How does collateral help to reduce the adverse selection problem in credit market?


Definitions:

Oldowan Tool Tradition

The first stone tool industry beginning between 2.5 and 2.6 million years ago.

Human Ancestors

Prehistoric beings and early hominids that preceded and contributed genetically and behaviorally to the modern human species.

Homo Habilis

An extinct species of early humans, known for its use of basic stone tools, living approximately 2.1 to 1.5 million years ago.

Australopithecines

A genus of hominids that lived in Africa between about 4 to 2 million years ago, known for walking upright and being a direct ancestor of modern humans.

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