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Because of the problems of adverse selection and moral hazard, it has been suggested that the World Bank and International Monetary Fund a make loans

Because of the problems of adverse selection and moral hazard, it has been suggested that the World Bank and International Monetary Fund
a
make loans to the riskiest nations so that private investors will not be tempted to take a risk.
b
impose tougher preconditions on borrowers.
c
not make loans to risky nations because there is a high demand for funds from safer nations.
d
loan only to countries that have free elections.

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