The World Bank Has Extended a Loan to Country X

question 43

Multiple Choice

The World Bank has extended a loan to Country X to build a new toll road and counts on the repayment of the loan from the collected tolls. After the funds have been transferred to the country, the government decides to spend the money to build a new presidential palace. This is an example of

• A) hostile selection.
• B) adverse selection.
• C) moral hazard.
• D) government risk.

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Definitions:

Depression

A low, sad state marked by significant levels of sadness, lack of energy, low self-worth, guilt, or related symptoms.

Interpersonal Problem Areas

Conditions or situations in relationships between individuals that can lead to conflict or distress.

Depression

A mood disorder that causes a persistent feeling of sadness and loss of interest, affecting how you feel, think, and handle daily activities.

Psychodynamic Approach

A psychological perspective that emphasizes the systematic study of the psychological forces that underlie human behavior, feelings, and emotions and how they might relate to early experience.