Her experience best illustrates the phenomenon of "visual capture".
In psychology, visual capture in the field
of psychology refers to a scene where the vision overpowers other senses in
forming a perception. In this procedure what happens is that the visual sense affects
the other parts of somatosensory system which ends up in a supposed
surroundings which is matching with the reality.
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.
