The risk that the worst borrowers pursue the loan most diligently is ______________________.

Name: The risk that the worst borrowers pursue the loan most diligently is ______________________.
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Adverse selection refers to a situation where the party with more information about its own risk level is more likely to participate in an exchange, leading to a higher likelihood that loans are given to those more likely to default.

The Risk That the Worst Borrowers Pursue the Loan Most