When the potential borrowers who are the most likely to default are the ones most actively seeking a loan, _ is said to exist. | Faculties

R

Ram Sharma

🎓 Coach ⭐ 193.88K Points

📊 Financial Markets and Institutions

Q. When the potential borrowers who are the most likely to default are the ones most actively seeking a loan, _ is said to exist.

(A) asymmetric information
(B) adverse selection
(C) moral hazard
(D) fraud

💬 Discuss

✅ Correct Answer: (B) adverse selection

You must be Logged in to update hint/solution

💬 Discussion

📊 Question Analytics

👁️

841

Total Visits

📽️

1 y ago

Published

🎖️

Ram Sharma

Publisher

📈

96%

Success Rate