Let Us Suppose That You Apply for a Loan with a Bank

question 59

Multiple Choice

Let us suppose that you apply for a loan with a bank. You tell the bank that you are going to remodel your kitchen, but after you get the loan you go to Las Vegas to gamble with the money. Your behavior is an example of

• A)adverse selection.
• B)direct credit allocation.
• C)moral hazard.
• D)indirect credit allocation.

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Definitions:

Email Signature

A block of text automatically appended at the bottom of an email message containing the sender's contact information and sometimes, a legal disclaimer.

Personalization

The process of tailoring content, recommendations, or experiences to individual users or consumers based on their preferences or behavior.

Subject Field

A specific area of knowledge or study.

Content Curation Sites

Online platforms that select, organize, and present content from various sources around particular themes or interests.