In Order to Reduce the ________ Problem in Loan Markets,bankers

question 114

Multiple Choice

In order to reduce the ________ problem in loan markets,bankers collect information from prospective borrowers to screen out the bad credit risks from the good ones.

• A)moral hazard
• B)adverse selection
• C)moral suasion
• D)adverse lending

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Definitions:

Disagree

To have a different opinion or to not hold the same views.

Social Circle

A group of friends or acquaintances with whom a person regularly interacts.

Depends

A term indicating that the outcome or conclusion varies based on specific circumstances or variables.

Grandparents

Typically refers to the parents of a person's parents, often playing a significant role in family structure and child-rearing.