This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: A credit union faces a(n) ________ problem when it lends funds to a customer to remodel her home and ... (Read 15 times)

B

  • Hero Member
  • *****
  • Posts: 570
on: Apr 19, 2019

Question 1

An automobile finance company faces an adverse selection problem if borrowers


◦ with a greater chance of defaulting on their car loans get loans from the lender.
◦ with no chance of defaulting on their car loans get loans from the lender.
◦ choose to get their car loans from a source other than the finance company.
◦ choose a 5-year loan as opposed to a 2-year loan.

Question 2

A credit union faces a(n) ________ problem when it lends funds to a customer to remodel her home and the customer then opportunistically uses the funds for a gambling trip to Las Vegas.


◦ adverse selection
◦ moral hazard
◦ external cost
◦ free-rider
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by B on Apr 19, 2019

tashiedavis420

  • Sr. Member
  • ****
  • Posts: 329
Reply #1 on: Apr 19, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 25% of students answer this correctly


B

  • Member
  • Posts: 570
Reply 2 on: Apr 19, 2019
:D TYSM

tandmlomax84

  • Member
  • Posts: 323
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

The first oncogene was discovered in 1970 and was termed SRC (pronounced "SARK").

Did you know?

The training of an anesthesiologist typically requires four years of college, 4 years of medical school, 1 year of internship, and 3 years of residency.

Did you know?

The Centers for Disease Control and Prevention (CDC) was originally known as the Communicable Disease Center, which was formed to fight malaria. It was originally headquartered in Atlanta, Georgia, since the Southern states faced the worst threat from malaria.

Did you know?

During the twentieth century, a variant of the metric system was used in Russia and France in which the base unit of mass was the tonne. Instead of kilograms, this system used millitonnes (mt).

Did you know?

In Eastern Europe and Russia, interferon is administered intranasally in varied doses for the common cold and influenza. It is claimed that this treatment can lower the risk of infection by as much as 60–70%.

Pendulum Problem Pendulum Problem
Cards Used in a Socially Situated Version of the Problem-Solving Test Cards Used in a Socially Situated Version of the Problem-Solving Test
Solution to Exponent Law Problem Solution to Exponent Law Problem
Identification of the numbers in the Word Problem Identification of the numbers in the Word Problem
Chelsea Donahue has a​ 20-year home mortgage of ​78,000 at​ 7.50% interest and will pay ... Chelsea Donahue has a​ 20-year home mortgage of ​78,000 at​ 7.50% interest and will pay ...
problem problem
Video: Sigmoidoscopy

For a complete list of videos, visit our video library