Question: a. Does Zaneb create any moral hazard or adverse selection problems for either the bank or the car dealer? b. Does either the bank or
b. Does either the bank or the car dealer create any moral hazard or adverse selection problems for Zaneb?
Zaneb is a high-school teacher and is well known in her community for her honesty and integrity. She is shopping for a used car and plans to borrow the money from her local bank to pay for the car.
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