From the Standpoint of ________,Specialization in Lending Is Surprising but Makes

question 87

Multiple Choice

From the standpoint of ________,specialization in lending is surprising but makes perfect sense when one considers the ________ problem.

• A)moral hazard;diversification
• B)diversification;moral hazard
• C)adverse selection;diversification
• D)diversification;adverse selection

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Definitions:

Liability

Legal responsibility for one's actions or omissions, which can result in an obligation to compensate for any resulting damages or losses.

Debt

an obligation, typically financial, owed by one party to another.

Retires

The act of leaving one's job and ceasing to work, typically due to reaching a certain age or for health reasons.

Liability on Debts

The legal responsibility to pay money owed to creditors, either by an individual or a company.