If a Business Firm Takes Out a Loan from a Bank

question 26

Multiple Choice

If a business firm takes out a loan from a bank, but does not use the funds as the bank intended, the problem is

• A)moral hazard.
• B)adverse selection.
• C)intermediation.
• D)securitization.

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Definitions:

Deviant Ways

Pertains to behaviors or actions that deviate from the societal norms or expectations. These are actions that are considered not normal or acceptable by the majority of society.

Statistical Analysis

The collection, analysis, interpretation, and presentation of data to discover underlying patterns and trends.

Deviant Act

Behavior that deviates from societal norms or expectations, which can be criminal or non-criminal but attracts disapproval, punishment, or sanction.

Background Factors

The underlying conditions or influences that shape an individual's behavior, attitudes, or achievements, often considered in studies of social and psychological development.