If a business firm takes out a loan from a bank, but does not use the funds as the bank intended, the problem is

A. moral hazard.
B. adverse selection.
C. intermediation.
D. securitization.


Answer: A

Business

You might also like to view...

In terms of the 75/15/10 rule, the 10 represents the amount of money that is spent on creating or designing the ads

Indicate whether the statement is true or false

Business

Which of the following approaches is characteristic of a manager using the contingency viewpoint?   

A. Purchasing new technology to improve efficiency. B. Simplifying the steps of the work process. C. Using motivational techniques to boost worker productivity. D. Assessing the characteristics of particular situation before deciding what to do. E. Performing a motion study.

Business

The following transactions apply to a company that uses a periodic inventory system. For each transaction, state which accounts are used and whether the account is debited or credited. All transactions involve the purchase of inventory.

Business

Compare and contrast the four types of buying decision behavior exhibited by consumers

What will be an ideal response?

Business