When Borrowers Who Do Not Intend to Repay Are Able

question 32

Multiple Choice

When borrowers who do not intend to repay are able to hide their bad credit histories,a lender's well-intentioned borrowers should

• A) complain to regulatory authorities
• B) withdraw their loan applications
• C) offer more collateral in exchange for lower interest charges
• D) divulge still more information on their loan applications
• E) hope for a pooling equilibrium

---

Definitions:

Historical Conditions

The specific social, economic, cultural, and political circumstances that existed in a particular era or place, significantly affecting events and developments.

Gender Ideology

A set of beliefs or ideas about the roles, behaviors, and attributes considered appropriate for men and women in a society.

Adolescents

Individuals in the transition stage from childhood to adulthood, typically ranging from ages 13 to 18.

High School

An educational institution for adolescents, typically offering education from grades 9 or 10 through 12, preceding college or university.