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Author Question: When applying for a loan, a borrower tends to know more about her ability to pay it back than does ... (Read 72 times)

go.lag

  • Hero Member
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  • Posts: 667
on: Jun 30, 2018
When applying for a loan, a borrower tends to know more about her ability to pay it back than does the bank. This is an example of
 a. perfect information
  b. moral hazard
  c. a low marginal benefit of information for the bank
  d. asymmetric information
  e. optimal search

Question 2

Production and exchange depend on an reliable infrastructure of
 a. transportation
  b. communication
  c. sanitation
  d. electricity
  e. All of the answers are correct


mohan

  • Sr. Member
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  • Posts: 362
Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

E


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