Multiple Choice
Moral hazard problem associated with bank lending stems from
A) the borrower's private attributes which are unknown to the bank at the time of the loan application
B) the bank's inability to screen the borrower to determine its creditworthiness
C) the borrower's desire to take on riskier projects after obtaining the loan
D) all of the above
E) b and c only
Correct Answer:
Verified
Correct Answer:
Verified
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