The concept that the borrowers who are most willing to accept a high interest rate are the same borrowers who are most likely to default on their loans is called

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Adverse selection refers to the phenomenon where the borrowers who are most likely to default on their loans are also the ones who are most willing to pay a high interest rate. This is because borrowers who have a high risk of defaulting on their loans are willing to pay a higher interest rate to compensate lenders for the risk they are taking by lending them money. On the other hand, borrowers who have a low risk of defaulting on their loans will not be willing to pay as high an interest rate, as they do not need to compensate lenders for as much risk. As a result, adverse selection can lead lenders to attract borrowers who are more likely to default, which can increase the overall riskiness of their loan portfolios.

The Concept That the Borrowers Who Are Most Willing to Accept