A person takes out a car loan at a bank, but actually uses the money to play the lottery. This situation is an example of which problem banks face in lending?
A) adverse selection
B) moral hazard
C) interest rate risk
D) illiquidity
B
Economics
You might also like to view...
Resources that ________ protected by well-defined property rights are in ________ of being depleted
A) are; great danger B) are; absolutely no danger C) are not; the greatest danger D) are not; little danger
Economics
Refer to the information provided in Figure 7.4 below to answer the question(s) that follow. 
Figure 7.4Refer to Figure 7.4. The marginal product of the first worker is
A. 12. B. 16. C. 20. D. 32.
Economics