Questions about employment history on a loan application are used to prevent
A) moral hazard.
B) adverse selection.
C) market signaling.
D) risk aversion.
Correct Answer:
Verified
Q167: If a lender checks credit reports on
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Q170: In the market for automobile insurance, moral
Q171: Bill purchases property insurance for his office
Q173: If Ben becomes less likely to buy
Q174: Used car buyers believe a car is
Q175: Used car buyers believe a car is
Q176: If a life insurance company offers coverage
Q177: One way of reducing the moral hazard
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