Question: To decrease adverse selection risk: A. an insurance company would monitor traffic violations of its insured drivers. B. a bank would keep its eye on

To decrease adverse selection risk:
  • A.

    an insurance company would monitor traffic violations of its insured drivers.

  • B.

    a bank would keep its eye on its current borrowers bank accounts.

  • C.

    a finance company would screen potential borrowers.

  • D.

    the government would bail out troubled banks.

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