One Result of Asymmetric Information in the Market for Bank

question 111

Multiple Choice

One result of asymmetric information in the market for bank loans is that:​

• A)few privileged customers are offered loans.
• B)few bad loans are made and the default rate is low.
• C)more bad loans than good loans may be made.
• D)lenders benefit at the expense of borrowers.
• E)the interest charged on good loans is higher than the same charged on bad loans.

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Definitions:

Dysgraphia

Dysgraphia is a neurological disorder characterized by impaired writing ability, making it difficult for individuals to form letters or organize their thoughts on paper effectively.

Apprenticeship Setting

A learning environment where a novice gains knowledge and skills in a particular trade or profession through direct instruction and hands-on experience under the guidance of an experienced mentor.

Formal Education Settings

Institutions or environments like schools and universities where structured and standardized educational programs are provided.

Motivation

The internal and external factors that stimulate people to take actions that lead to achieving a goal.