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Which of the following is correct? Group of answer choices a) A CEO allocating funds to projects not previously disclosed to a lender to increase
Which of the following is correct?
Group of answer choices
a) A CEO allocating funds to projects not previously disclosed to a lender to increase returns is an example of adverse selection.
b) A lending institution making a loan to a firm subject undisclosed lawsuits is an example of moral hazard.
c) A bank lending funds to a hospital for a new emergency room that fails in its operations is an example of moral hazard.
d) Two answers are correct.
e) All answers are correct.
f) None of the other answers are correct.
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