A Bank Is Seeking to Downsize by Offering Workers Incentives

Multiple Choice

A bank is seeking to downsize by offering workers incentives to retire early. What problem of adverse selection might this scheme cause?

A) The more risk-averse workers would be more likely to retire early.
B) The more capable workers would be more likely to retire early.
C) Workers would look outside for better opportunities.
D) a and b.
E) b and c.