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    Exam 23: Risk Management in Financial Institutions
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    If Borrowers with the Most Risky Investment Projects Are More
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If Borrowers with the Most Risky Investment Projects Are More

Question 49

Question 49

Multiple Choice

If borrowers with the most risky investment projects are more likely to seek bank loans than borrowers with the safest investment projects,banks face the problem of ________.


A) adverse credit risk
B) adverse selection
C) moral hazard
D) conflict of interest

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