A bank givesa mortgage loan to a home-buyer but afterward, cannot properly monitor if the home-buyer is able to keep his job to be able to repay the loan. This Select one: a. creates moral hazard problem faced by the home-buyer. O b. generates more trustworthy relationship between the bank and the home-buyer. Oc. creates moral hazard problem faced by the bank. O d. encourages good, safe behaviour on the part of the home-buyer.

A bank givesa mortgage loan to a home-buyer but afterward, cannot properly monitor if the home-buyer is able to keep his job to be able to repay the loan. This Select one: a. creates moral hazard problem faced by the home-buyer. O b. generates more trustworthy relationship between the bank and the home-buyer. Oc. creates moral hazard problem faced by the bank. O d. encourages good, safe behaviour on the part of the home-buyer.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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