Briefly explain: 1. why adverse selection exists in the case when a bank makes loans to individuals?

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Briefly explain:

1. why "adverse selection" exists in the case when a bank makes loans to individuals?

2.why "moral hazard" exists in the case when a bank makes loans to individuals?

Posted Date: Jun 14, 2024 01:07 AM

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Briefly explain: 1. why adverse selection exists in the case when a bank makes loans to individuals?

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