[Solved] Financial institutions expect that

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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.

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