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    Financial System and the Economy Principles
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    Exam 9: Commercial Banking Structure, Regulation, and Performance
  5. Question
    The Problem of Using Borrowed Funds for a More Risky
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The Problem of Using Borrowed Funds for a More Risky

Question 82

Question 82

Multiple Choice

The problem of using borrowed funds for a more risky purpose than what they were originally intended for is called which of the following?


A) asymmetrical information
B) adverse selection
C) default risk
D) moral hazard

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