A borrower has information that is not available to a prospective lender; this is an example of:

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Information asymmetry refers to a situation where one party in a transaction has information that is not available to the other party, which can lead to adverse selection and moral hazards. This is a common problem in lending, where borrowers may have more information about their financial situation and ability to repay a loan than lenders. The lender may be exposed to greater risk as a result of this information asymmetry.

A Borrower Has Information That Is Not Available to a Prospective