'The more collateral there is backing a loan, the less the lender has to worry about adverse selection.' Is this statement t

Question

3 years ago

13

'The more collateral there is backing a loan, the less the lender has to worry about adverse selection.' Is this statement t

rue, false, or uncertain? This statement is ▼ false true uncertain because collateral ▼ negates increases reduces the adverse selection problem.

Social Studies

1 answer:

MaRussiya [10] · Answer 1 · 2022-04-06T12:52:46+03:00

MaRussiya [10]3 years ago

5 0

Answer:

This statement is true.

Explanation:

The statement that "The more collateral there is backing a loan, the less the lender has to worry about adverse selection" is true because collateral reduces the adverse selection problem.

​'The more collateral there is backing a​ loan, the less the lender has to worry about adverse​ selection.' Is this statement​ t

'The more collateral there is backing a loan, the less the lender has to worry about adverse selection.' Is this statement t