The Substantial Risks Taken by Financial Intermediaries Like Sallie Mae

question 16

Multiple Choice

The substantial risks taken by financial intermediaries like Sallie Mae because they are insured are examples of what economists refer to as:

• A)sub-prime behavior.
• B)asymmetric information.
• C)moral hazard.
• D)countercyclical policy.

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Definitions:

Anxious

Describes a feeling of worry, nervousness, or unease about something with an uncertain outcome.

Nervous

A state of being easily agitated or anxious, often in response to stress or uncertainty.

Universal

Universal pertains to something that is applicable or common to all cases, people, or situations without exception.

Organizational Commitment

The psychological attachment or loyalty of an employee towards their organization.