When you get a car loan, the lending institution usually sends a check directly to the car dealer. Such a practice
A) helps forestall moral hazard.
B) helps forestall adverse selection.
C) gives rise to moral hazard.
D) gives rise to adverse selection.
A
Economics
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Your U.S.-based company is doing business internationally. One way to mitigate exchange rate risk is to
A) require payment in US$. B) use a forward contract. C) use a futures contract. D) All of the above.
Economics
In the above figure, what is the price the firm receives if the output is 8?
A) $10 B) $2 C) $7 D) $8
Economics