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Private Information-Collection Firms Fail to Eliminate the Adverse Selection Problem

Question 72

Multiple Choice

Private information-collection firms fail to eliminate the adverse selection problem because


A) the law does not allow them to disclose private information about the creditworthiness of firms.
B) they do not monitor borrowers after loans have been made.
C) some investors who do not pay for their services will still profit from them.
D) most companies refuse to provide them with any information.

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