A borrower who takes out a loan usually has better information about the potential returns and risks of the investment projects he plans to undertake than the lender does. This inequality of information is called
A) moral hazard.
B) asymmetric information.
C) noncollateralized risk.
D) adverse selection.
B
Business
You might also like to view...
Accountants define the market value of inventory as its ______________________________
Fill in the blank(s) with correct word
Business
According to the Organization for Economic Cooperation and Development, ________ is the largest single economy in the world
A) China B) India C) the United States D) Japan E) Russia
Business
Damages compensate a party for harm suffered as a result of another's wrongful act.
Answer the following statement true (T) or false (F)
Business
The NYSE and NASDAQ both require that the members of the nominating committee be independent directors who are less likely to simply go along with whatever the CEO wants
Indicate whether the statement is true or false
Business