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Author Question: A credit union faces a(n) ________ problem when it lends funds to a customer to remodel her home and ... (Read 55 times)

B

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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
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Marked as best answer by B on Apr 19, 2019

tashiedavis420

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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.
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B

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Reply 2 on: Apr 19, 2019
Thanks for the timely response, appreciate it

hramirez205

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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