The Notion That Lenders Must Select from a Pool of Bad

question 13

Multiple Choice

The notion that lenders must select from a pool of bad credit risks,because the most undesirable borrowers are those that most actively seek out a loan is known as the ________.

• A)moral hazard problem
• B)ornamental torsion problem
• C)adverse selection problem
• D)asymmetric innovation problem

---

Definitions:

Species Decline

The decrease in numbers or genetic diversity of a species, often leading to its potential extinction.

Ecological Restoration

The practice of renewing and restoring degraded, damaged, or destroyed ecosystems and habitats in the environment by active human intervention and action.

Extinct In The Wild

Refers to species that no longer exist in their natural habitat but are maintained in captivity or through artificial propagation.

Acid Deposition

The deposition of acidic components in rain, snow, or dust on the surface of the Earth, often resulting from industrial emissions.