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    Business
  3. Study Set
    Money Banking and Financial Markets
  4. Exam
    Exam 9: Banking and the Management of Financial Institutions
  5. Question
    Because Borrowers,once They Have a Loan,are More Likely to Invest
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Because Borrowers,once They Have a Loan,are More Likely to Invest

Question 53

Question 53

Multiple Choice

Because borrowers,once they have a loan,are more likely to invest in high-risk investment projects,banks face the


A) adverse selection problem.
B) lemon problem.
C) adverse credit risk problem.
D) moral hazard problem.

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