One Result of Asymmetric Information in the Market for Bank

question 124

Multiple Choice

One result of asymmetric information in the market for bank loans is that

• A)few loans are offered
• B)few bad loans are made
• C)more bad loans than good loans may be made
• D)lenders benefit at the expense of borrowers
• E)the interest on good loans will be higher than otherwise

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Definitions:

Blow Off Loads

A safety mechanism designed to release excess pressure or load from a system to prevent damage or failure, often used in pressure vessels and hydraulic systems.

Semi-Trailer Bogie

A semi-trailer bogie is a wheel assembly located at the rear of a semi-trailer, providing support and stability to the trailer structure by distributing its load over multiple axles.

Trailer Bridge Formula

A formula used to determine the appropriate weight limits for bridges and roadways, considering the trailer's length and axle spacing.

Tractor Bridge Formula

A mathematical equation used in transportation to determine the maximum allowable weight on any set of axles on a tractor-trailer, based on the distance between those axles.