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valputin valputin
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8 years ago
The problem faced by the lender that the borrower may take on additional risk after receiving the loan is called
A) moral hazard.
B) adverse selection.   
C) transactions costs.
D) diversification.
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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#2
8 years ago
Thank you
Our course uses > The Economics of Money, Banking and Financial Markets
wrote...
#3
8 years ago
@valputin,

Happy to help Slight Smile
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