In consumer lending, asymmetric information
A) happens only with securitization.
B) cannot be dealt with using the same techniques as in business lending.
C) can be partly offset using the same techniques as in business lending.
D) may be virtually eliminated as a problem by just a collateral requirement.
D
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Discuss how tax burdens are related to the elasticity of labor.What do most economists believe is true about the elasticity of labor supply in the United States and the burden if any that workers bear?
What will be an ideal response?
How do changes in income tax policies affect aggregate demand?
A) Higher taxes increase corporate investment and aggregate demand. B) Higher taxes reduce disposable income, consumption, and aggregate demand. C) Higher taxes increase aggregate supply and thus increase aggregate demand as well. D) Higher taxes increase disposable income, consumption, and aggregate demand.