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valputin valputin
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8 years ago
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.
Textbook 
The Economics of Money, Banking and Financial Markets, Business School Edition

The Economics of Money, Banking and Financial Markets, Business School Edition


Edition: 4th
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Our course uses > The Economics of Money, Banking and Financial Markets
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MeelaMeela
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8 years ago
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valputin Author
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8 years ago
Perfect answer, thx
Our course uses > The Economics of Money, Banking and Financial Markets
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#3
8 years ago
Great! Happy to be right Face with Stuck-out Tongue
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