Financial Intermediaries Reduce the Problems in Lending Associated with Information

question 14

Multiple Choice

Financial intermediaries reduce the problems in lending associated with information asymmetries by all of the following except:

• A)Collecting and processing standardized information
• B)Screening applicants to be sure they are creditworthy
• C)Monitoring loan recipients to be sure the funds are used properly
• D)Charging interest rates high enough to discourage undesirable borrowers

---

Definitions:

Anterograde Amnesia

A loss of the ability to create new memories after the event that caused the amnesia, leading to a partial or total inability to recall the recent past.

Cerebellum

A part of the brain located at the back of the skull, crucial for motor control, coordination, precision, and timing of movements.

Implanted Memories

False memories that are deliberately or accidentally suggested and then incorporated into an individual's memory bank.

False Memory

A psychological phenomenon where a person recalls something that did not actually occur or recalls it differently from the way it actually happened.