Midori goes to her bank to apply for a loan to buy a house. Before making the

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Midori goes to her bank to apply for a loan to buy a house. Before making the loan, the bank asks for information about Midori's credit record. The bank does this to: enhance its reputation. reduce the adverse selection problem. signal its concern about the future. signal its interest in making the loan

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Midori goes to her bank to apply for a loan to buy a house. Before making the

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