The price of a given basket of goods in Richland is 75 ritz. If the same basket of goods cost 10 in the U.S., the price of a basket of goods worth 1 in the U.S. is ________.
A) 0.13 ritz B) 1 ritz C) 7.5 ritz D) 1.5 ritz
Question 2
Adverse selection refers to the
A) use of statistical discrimination in making loans.
B) possession of information by one party in a financial transaction not known by the other party.
C) likelihood that a potential borrower may use the funds that he receives for unworthy, high risk projects.
D) possibility that the borrower may engage in riskier behavior after the loan is obtained.
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