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When Borrowers Who Do Not Intend to Repay Are Able

Question 4

Multiple Choice

When borrowers who do not intend to repay are able to hide their bad credit histories,a lender's well-intentioned borrowers should


A) complain to regulatory authorities
B) withdraw their loan applications
C) offer more collateral in exchange for lower interest charges
D) divulge still more information on their loan applications
E) hope for a pooling equilibrium

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