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:

Disordered Behavior

Actions or patterns of behavior that deviate significantly from societal expectations or norms, often indicative of a psychological or mental health issue.

Psychotherapy

A therapeutic treatment involving psychological methods, particularly when based on regular personal interaction with adults, to help a person change behavior and overcome problems in desired ways.

Therapy Sessions

Structured meetings between a therapist and a client aimed at addressing mental health issues or emotional difficulties.

Dream Interpretation

A therapeutic technique or process of analyzing dreams to uncover underlying emotional or psychological meanings.