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valputin valputin
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8 years ago
Collateral requirements lessen the consequences of ________ because the collateral reduces the lender's losses in the case of a loan default and it reduces ________ because the borrower has more to lose from a default.
A) moral hazard; adverse selection
B) adverse selection; diversification
C) diversification; moral hazard
D) adverse selection; moral hazard
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
Author:
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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
@valputin,

Happy to help Slight Smile
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