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One Result of Asymmetric Information About People's Ability to Repay

Question 336

Multiple Choice

One result of asymmetric information about people's ability to repay a loan is that


A) loans will only be made to people who don't pay them back.
B) a bank could make many loans to people who don't pay them back.
C) lenders are better off than with perfect information.
D) banks will not make loans.

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