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Author Question: The notion that lenders must select from a pool of bad credit risks, because the most undesirable ... (Read 76 times)

sam.t96

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on: Jun 30, 2018
The notion that lenders must select from a pool of bad credit risks, because the most undesirable borrowers are those that most actively seek out a loan is known as the ________.
 
  A) moral hazard problem
  B) ornamental torsion problem
  C) adverse selection problem
  D) asymmetric innovation problem

Question 2

Through its impact on the desired stock of housing, higher expected income would lead to ________.
 
  A) an increase in residential investment
  B) a decrease in expected house price appreciation
  C) a decrease in residential investment
  D) a decrease in single-family dwellings


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aloop

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Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

A


sam.t96

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Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review

mcarey591

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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