A Lender Who Wants to Avoid the Problem of Adverse

question 51

Multiple Choice

A lender who wants to avoid the problem of adverse selection could:

• A)Charge a very high interest rate and assume all loan applicants are high risk
• B)Charge the same average interest rate to all borrowers
• C)Charge a low interest rate and make the applicant prove they warrant the low rate by providing information
• D)Only lend by issuing credit cards

---

Definitions:

Female Reformers

Women who actively work or have worked toward social, political, or environmental change, often advocating for rights, equality, and justice.

Labor Force

The total number of people available for work, including both the employed and the unemployed.

Presidential Election

The process by which the president of a country is elected, typically involving a direct vote by the citizens or an electoral college system.

American Citizenship

The status of being a citizen of the United States, entitling one to rights, privileges, and duties under the U.S. Constitution and laws.