Which of the Following Is Adverse Selection

question 9

Multiple Choice

Which of the following is adverse selection?

• A)the risk associated with selecting stocks in only a few specific companies
• B)the risk that a person will become overconfident in his ability to select stocks
• C)a high-risk person being more likely to apply for insurance
• D)after obtaining insurance a person having less incentive to be careful

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Definitions:

Allied Debts

The financial obligations incurred by countries allied during wartime, particularly during World War I, owed to other nations and financial institutions.

American Response

The actions or reactions of the United States government, its people, or organizations to domestic or international events, crises, or policies.

Official Relief Programs

Government-sponsored initiatives designed to provide financial assistance and support to individuals and communities in need.

Kellogg-Briand Pact

An international agreement signed in 1928, in which signatory states pledged to renounce war as a means of national policy and settle disputes by peaceful means.