Question: Adverse selection is a problem associated with equity and debt contracts arising from _ _ _ _ _ _ _ _ . Question 6 options:

Adverse selection is a problem associated with equity and debt contracts arising from ________.
Question 6 options:
the borrower's lack of good options for obtaining funds
the lender's relative lack of information about the borrower's potential returns and risks of his investment activities
the borrower's lack of incentive to seek a loan for highly risky investments
the lender's inability to legally require sufficient collateral to cover a 100 percent loss if the borrower defaults

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