Multiple Choice
Why would a bank require a borrower to have collateral or a cosigner before agreeing to lend funds?
A) discourages some borrowers from asking for a loan
B) reduces risk associated with imperfect information
C) both act like a service contract in the goods market
D) complicates the process to discourage risking borrowers
Correct Answer:

Verified
Correct Answer:
Verified
Q45: _ often have deductibles, which is an
Q46: What name is given to an organization
Q47: Automobile manufacturers use warranties as incentives for
Q48: In the insurance industry, homeowners are referred
Q49: The government rules on advertising are enforced
Q51: One strategy insurance companies have adopted to
Q52: When Morty leased his new car, he
Q53: All but one of the following is
Q54: One prominent U.S. study found that when
Q55: Imagine a consumer shopping for a used