When the potential borrowers who are the most likely to default are the ones most actively seeking a loan, _________ is said to exist.
A. asymmetric information
B. adverse selection
C. moral hazard
D. fraud
Answer:B
When the potential borrowers who are the most likely to default are the ones most actively seeking a loan, _________ is said to exist.
A. asymmetric information B. adverse selection C. moral hazard D. fraud