When the borrower engages in activities that make it less likely that the loan will be repaid, _________ is said to exist.
A. asymmetric information
B. adverse selection
C. moral hazard
D. fraud
Answer:C
When the borrower engages in activities that make it less likely that the loan will be repaid, _________ is said to exist.
A. asymmetric information B. adverse selection C. moral hazard D. fraud