When the Potential Borrowers Who Are the Most Likely to Default

question 24

Multiple Choice

When the potential borrowers who are the most likely to default are the ones most actively seeking a loan,________ is said to exist.

• A) asymmetric information
• B) adverse selection
• C) moral hazard
• D) fraud

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Definitions:

Individual Values

Unique numerical or qualitative characteristics that distinguish one entity from another.

Intersection

The point or set of points where two or more paths, lines, or surfaces cross each other, often used in mathematics and geography.

Row

A horizontal line of cells in a spreadsheet or table.

Column

A vertical division in a table or spreadsheet that categorizes information under a specific heading for organization and reference.