Two people are involved in a borrower/lender situation, and one person has superior knowledge of its own current and future prospects over the other person. This is known as

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Asymmetric information refers to a situation where one person has more information than the other person in a transaction. In this case, the borrower/lender situation involves one party with superior knowledge of their current and future prospects, which creates an uneven distribution of information.

Two People Are Involved in a Borrower/lender Situation, and One