Which of the Following Is NOT an Example of the Adverse

Multiple Choice

Which of the following is NOT an example of the adverse selection problem?

A) Buyers in a market for used cars must choose from an undesirable selection of used cars.
B) An insurance company must choose one price for its coverage for both high-cost and low-cost people.
C) Commercial banks would rather use credit rationing than raising interest rates in the presence of excess demand for loans.
D) An insured motorist drives more recklessly.