Increases in a Borrower's Net Worth

question 5

Multiple Choice

Increases in a borrower's net worth:

• A)Reduces the problem of moral hazard
• B)Lowers the information costs of lending
• C)Reduces the problem of adverse selection
• D)All of the answers given are correct

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Definitions:

Rumination

A focused attention on the symptoms of one's distress, and its possible causes and consequences, rather than its solutions.

Self-Control

The ability to regulate one's emotions, thoughts, and behaviors in face of temptations and impulses.

Progesterone Levels

The concentration of progesterone, a hormone important for the regulation of menstruation and pregnancy, in the bloodstream.

Type D Personality

A personality trait marked by significant negative emotions and a tendency towards avoiding social interactions.