One Method That Lenders Use to Mitigate the Adverse Selection

question 92

Multiple Choice

One method that lenders use to mitigate the adverse selection problem is to

• A)charge higher interest rates to less creditworthy borrowers.
• B)monitor closely the behavior of borrowers after a loan is made.
• C)ration credit.
• D)provide default insurance.

---

Definitions:

Trademark Infringement

Involves the unauthorized use of a trademark or service mark on or in connection with goods and/or services in a manner that is likely to cause confusion, deception, or mistake about the source of the goods and/or services.

Registered Trademark

A symbol, word, or words legally registered or established by use as representing a company or product.

Apple Symbol

Trademark symbol associated with Apple Inc., representing its brand and products.

Trademark Office

is a governmental body responsible for registering and enforcing trademark rights to protect brands and logos.