A Conflict of Interest Occurs When

Multiple Choice

A conflict of interest occurs when

A) a financial firm sells a service to its customers for a price that exceeds the cost of producing the service.
B) lenders prefer higher interest rates and borrowers prefer lower interest rates.
C) riskier borrowers are the ones who are more likely to apply for loans.
D) people expected to provide reliable information to the public have incentives not to do so.