The fact that individuals whose credit-worthiness is less than it appears to be are those who are most willing to borrow money at any given interest rate is an example of

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Adverse selection refers to the situation where one party has more information than the other in a transaction. In this case, borrowers with lower credit-worthiness are more willing to borrow at any given interest rate, indicating that they may have more knowledge about their own financial situation than lenders do. This creates adverse selection, as lenders may end up offering loans to riskier borrowers without realizing the true level of risk.

The Fact That Individuals Whose Credit-Worthiness Is Less Than It