The Most Direct and Important Consequence of an Increase in Asymmetric

question 71

Multiple Choice

The most direct and important consequence of an increase in asymmetric information problems is ________.

• A)a decrease in the probability of loan repayment
• B)inability to assess the probability of loan repayment
• C)unwillingness of borrowers to accept the market rate of interest
• D)inability of creditors to acquire enough funds to meet borrowers' demand

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Definitions:

Light

Electromagnetic radiation that is visible to the human eye, fundamental for visual perception and involved in various biological processes.

Trichromatic Theory

Explanation of color vision based on the coding of three primary colors: red, green, and blue.

Color Vision

The ability of the visual system to distinguish objects based on the wavelengths of the light they reflect, emit, or transmit.

Retina

The light-sensitive layer of tissue at the back of the inner eye that converts light images into nerve signals sent to the brain.