1. What is meant by the Adverse Selection Problem:
   1. Customers who seek (apply) for insurance policies are less likely to be the most in need of coverage (to claim);
   2. Customers are foolish with insurance policies often choosing expensive policies they do not need;
   3. Insurance companies often invest in securities that are too safe to provide the income needed to meet their expected claims;
   4. Customers who seek (apply) for insurance policies are more likely to be the most in need of coverage (claim)