[Solved] Financial institutions expect that

McqMate

Q.	Financial institutions expect that
A.	moral hazard will occur, as the least desirable credit risks will be the ones most likely to seek out loans.
B.	opportunistic behavior will occur, as the least desirable credit risks will be the ones most likely to seek out loans.
C.	borrowers will commit moral hazard by taking on too much risk, and this is what drives financial institutions to take steps to limit moral haza
Answer» B. opportunistic behavior will occur, as the least desirable credit risks will be the ones most likely to seek out loans.

4.4k

0

Do you find this helpful?

29

View all MCQs in

Financial Markets and Institutions

Discussion

No comments yet

Related MCQs

Financial institutions are also known as ........................
........................ is an apex institution to coordinate, supplement and integrate the activities of all existing specialised financial institutions.
The stocks or shares that are sold to investors without transacting through financial institutions are classified as
Which of the following financial intermediaries are depository institutions?
Financial institutions:
Which among the following was set up by RBI in 1988 jointly with public sector banks and all India Financial Institutions to develop the money market & provide liquidity to money market instruments as sequel to Vaghul Working Group recommendations?
Stocks or shares that are sold to investors without transacting through financial institutions are classified as
Which of the following actions might you expect lenders to take during periods of variable and unpredictable inflation?
The presence of in financial markets leads to adverse selection and moral hazard problems that interfere with the efficient functioning of financial markets.
The depository institutions such as thrifts includes