If bad credit risks are the ones who most actively seek loans then financial intermediaries face the problem of
A) moral hazard.
B) adverse selection.
C) free-riding.
D) costly state verification.
B
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In the above figure, an increase in the expected profit will result in a movement from point E to
A) point F. B) point G. C) point H. D) point I.
Which of the following statements is true?
A. Focusing on incremental costs is a bad idea for managers. B. Fixed cost is the same thing as variable cost. C. Costs look the same from all perspectives. D. Incremental cost is the same thing as marginal cost.
The text mentions 10 sources of U.S. comparative advantage. Which of the following is not one of them?
A. The fact that English is the international language of business B. Extensive natural resources C. A substantial policy to limit immigration D. Wealth from past production
Monetarism is a school of thought put forth by Milton Friedman. He argued that the economy would ordinarily
A) be below potential GDP. B) be at potential GDP. C) be unstable. D) be above potential GDP.