The problem faced by the lender that the borrower may take on additional risk after receiving the loan is called

A) adverse selection.
B) moral hazard.
C) transactions costs.
D) diversification.

B

Economics

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Suppose an individual buys a new CD of her favorite musical artist. This purchase has taken place in the

A) labor markets. B) factor markets. C) resource markets. D) product markets.

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A share representing a portion of ownership in a corporation:

a. liability b. dividend c. note of Stockholm d. stock e. bond

Economics