Because of the adverse selection problem
A) good credit risks are more likely to seek loans causing lenders to make a disproportionate amount of loans to good credit risks.
B) lenders may refuse loans to individuals with high net worth, because of their greater proclivity to "skip town."
C) lenders are reluctant to make loans that are not secured by collateral.
D) lenders will write debt contracts that restrict certain activities of borrowers.
C
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Why do firms in perfectly competitive markets have no control over the price of their products?
What will be an ideal response?
The demand for an input will be more inelastic when
A) the demand for the product being produced is elastic. B) the cost of the input is a relatively large percentage of total production costs. C) the time period being considered is relatively long. D) it is difficult to substitute other inputs for this input.
If the Swiss price level fell relative to the British price level, there would be
a. a rightward movement along the supply of British pounds curve in the franc-pound market b. a leftward movement along the supply of British pounds curve in the franc-pound market c. a rightward shift of the supply of British pounds curve in the franc-pound market d. a leftward shift of the supply of British pounds curve in the franc-pound market e. no change of the supply of British pounds curve in the franc-pound market
The USDA threshold income level was originally based on the cost of
A. basic clothing. B. a nutritionally adequate food plan. C. housing. D. transportation.