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 22 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
Great answer, keep it coming :)

coreycathey

  • Member
  • Posts: 333
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Opium has influenced much of the world's most popular literature. The following authors were all opium users, of varying degrees: Lewis Carroll, Charles, Dickens, Arthur Conan Doyle, and Oscar Wilde.

Did you know?

The term bacteria was devised in the 19th century by German biologist Ferdinand Cohn. He based it on the Greek word "bakterion" meaning a small rod or staff. Cohn is considered to be the father of modern bacteriology.

Did you know?

The Babylonians wrote numbers in a system that used 60 as the base value rather than the number 10. They did not have a symbol for "zero."

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates's recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Did you know?

Pope Sylvester II tried to introduce Arabic numbers into Europe between the years 999 and 1003, but their use did not catch on for a few more centuries, and Roman numerals continued to be the primary number system.

The Many Faces of Life (Part 2) The Many Faces of Life (Part 2)
Bank teller assisting with customer service. Bank teller assisting with customer service.
Men and women in Washington, DC, used problem-focused coping with the DC sniper attacks by ... Men and women in Washington, DC, used problem-focused coping with the DC sniper attacks by ...
Biology Forums Home Page (Feb. 2022) Biology Forums Home Page (Feb. 2022)
Chemistry - Problem Solving Chemistry - Problem Solving
Problem Problem
Video: Atrophy

For a complete list of videos, visit our video library