If a Borrower's Net Worth Increases

question 62

Multiple Choice

If a borrower's net worth increases:

• A)The likelihood of moral hazard also increases
• B)The borrowers are likely to want to take more risk
• C)The moral hazard risk for the potential lenders decreases
• D)The supply of loans decreases

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Definitions:

Work Assignments

Specific tasks or responsibilities assigned to employees as part of their job roles.

Logical Manner

A way of thinking and reasoning that is based on strict principles of validity.

John Holland's Model

is a theory of career and vocational choice based upon personality types, suggesting that people are more satisfied and productive when their work environments match their personal orientations.

Investigative People

Individuals who display a natural curiosity and inclination towards research, exploration, and uncovering facts.