When the potential borrowers who are the most likely to default are the ones most actively seeking a loan, _ is said to exist.

Related MCQs

• When the borrower engages in activities that make it less likely that the loan will be repaid, is said to exist.
• When the least desirable credit risks are the ones most likely to seek loans, lenders are subject to the
• …………………… facilitate the transfer of funds from savers to the borrowers.
• Which of the following are functions of a financial system? 1. The operation of a payments system. 2. Providing the means of portfolio adjustment. 3. Helping to reduce unemployment. 4. Channelling funds between lenders and borrowers. 5. Helping speculators to bet on price movements.
• _______ is a link between savers & borrowers, helps to establish a link between savers & investors
• The market for extremely short period loan is called.....................
• Call money is a loan given for a period of
• The market for extremely short period loan is called
• In financial markets, lenders typically have inferior information about potential returns and risks associated with any investment project. This difference in information is called
• Statutory regulation is likely to create larger compliance costs than self-regulation because: