When the Borrower Engages in Activities That Make It Less

question 68

Multiple Choice

When the borrower engages in activities that make it less likely that the loan will be repaid,________ is said to exist.

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

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Definitions:

Pons

A part of the brain located above the medulla and below the midbrain, playing a crucial role in regulating breathing, communication between different parts of the brain, and sensations such as hearing.

Fine-Motor Movement

Small movements that involve the coordination of small muscle groups, typically in the hands and fingers, such as writing or buttoning a shirt.

Cerebellum

A major structure of the hindbrain that is involved in fine motor control, balance, coordination, and voluntary movements.

Blood Pressure

The pressure of circulating blood on the walls of blood vessels, often measured for health assessments.