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For a mortgage lender that makes mortgage loans to borrowers, which one of the following would be an example of adverse selection? a . Individuals

For a mortgage lender that makes mortgage loans to borrowers, which one of the following would be an example of adverse selection?
a. Individuals most likely to default are the ones most likely to apply for the loan.
b. Borrowers investing their loan proceeds differently than the bank requires.
c. Individuals least likely to default are the ones most likely to apply for the loan.
d. After the loan has been made, individuals become careless with their finances.

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