Multiple Choice
One consequence of asymmetric information in the market for bank loans is that _____
A) few privileged customers are offered loans.
B) few bad loans are made and the default rate is low.
C) more bad loans than good loans may be made.
D) lenders benefit at the expense of borrowers.
E) the interest charged on good loans is higher than that charged on bad loans.
Correct Answer:
Verified
Correct Answer:
Verified
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