Adverse selection is the tendency for people who accept contracts ...

[magmichele12]

Adverse selection is the tendency for people who accept contracts to be those who
 
  A) buy goods and then regret it later.
  B) buy goods for more than their own reservation price.
  C) plan to use private information to the disadvantage of the less well-informed party.
  D) engage in a number of searches larger than that specified in the contract.

Question 2

________ in the desired reserve ratio will ________ the money multiplier.
 
  A) An increase; have no effect on
  B) An increase; decrease
  C) A decrease; decrease
  D) A decrease; will have no effect on

[cassie_ragen]

Answer to Question 1

C

Answer to Question 2

B