Question: To decrease adverse selection risk: A. a bank would keep its eye on its current borrowers bank accounts. B. the government would bail out troubled

To decrease adverse selection risk:
  • A. a bank would keep its eye on its current borrowers bank accounts.
  • B. the government would bail out troubled banks.
  • C. a finance company would screen potential borrowers.
  • D. an insurance company would monitor traffic violations of its insured drivers.

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