Which of the following are sources of credit market imperfections? (Select all that apply.)

A.

Borrowers cannot perfectly observe the creditworthiness of would-be lenders.

B.

Lenders know all characteristics of would-be borrowers.

C.

Borrowers know all characteristics of would-be lenders.

D.

Lenders cannot perfectly observe the creditworthiness of would-be borrowers.

E.

Lenders have an incentive to default on their debts.

F.

Borrowers have an incentive to default on their debts.