People who apply for loans know more about their ability to repay the loan than the lenders do. This is an example of:

A. asymmetric information.
B. public information.
C. a negative externality.
D. a community rating.


Answer: A

Economics

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Assuming all else equal, a decrease in the real interest rate will cause:

A) an upward movement along the credit supply curve. B) a downward movement along the credit supply curve. C) the credit supply curve to shift to the right. D) the credit supply curve to shift to the left.

Economics

Whenever somebody deposits a check from bank A into a checkable deposit at bank B, bank A's reserves ________ and bank B's reserves ________

A) increase; decrease B) increase; increase C) decrease; decrease D) decrease; increase E) do not change; do not change

Economics

Bonds receiving one of the top four ratings are considered:

A) junk B) speculative C) AAA D) investment grade

Economics

For the past 30 years, labor's share of national income ________ while labor productivity ________

A) fell dramatically, increased B) remained roughly constant, dropped C) remained roughly constant, increased D) increased modestly, dropped

Economics