What are adverse selection and moral hazard? How do banks mitigate these problems?

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Macroeconomics

ISBN: 978-1464168505

5th Canadian Edition

Authors: N. Gregory Mankiw, William M. Scarth

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Question Posted: Dec 31, 2015 01:41 AM

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What are adverse selection and moral hazard? How do banks mitigate these problems?

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Adverse selection exists when the person who is borrowing the funds has information about her situat...View the full answer

Macroeconomics

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