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Other Fields Homework Help Economics Topic started by: valputin on Nov 27, 2015



Title: Adverse selection is a problem associated with equity and debt contracts arising from
Post by: valputin on Nov 27, 2015
Adverse selection is a problem associated with equity and debt contracts arising from
A) the borrower's lack of incentive to seek a loan for highly risky investments.
B) the lender's relative lack of information about the borrower's potential returns and risks of his investment activities.
C) the lender's inability to legally require sufficient collateral to cover a 100% loss if the borrower defaults.
D) the borrower's lack of good options for obtaining funds.


Title: Re: Adverse selection is a problem associated with equity and debt contracts arising from
Post by: Meela on Dec 4, 2015
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Title: Re: Adverse selection is a problem associated with equity and debt contracts arising from
Post by: valputin on Dec 14, 2015
Perfect answer, thx


Title: Re: Adverse selection is a problem associated with equity and debt contracts arising from
Post by: Meela on Dec 14, 2015
Great! Happy to be right :p