Tom is applying for a loan. He already has a lot of credit card debt, personal loans and lines of credit. When the local bank runs his credit report, most of these credit facilities do not show up. Tom convinces his bank to give him one more loan at a favorable interest rate because he's gonna invest the money into a real estate venture. If the bank agrees to offer the loan to Tom, the bank could suffer from:

Question 13 options:

	Moral hazard
	Adverse selection.
	Business risk.
	Bank run off.