When approaching a bank for a loan,the borrower has better knowledge than the lender about his or her own ability to repay the loan without defaulting.What is this situation referred to as?
A) principal-agent problem
B) information asymmetry
C) experience-curve effect
D) learning-curve effect

Question

Quizplus · Accepted Answer

Information asymmetries are situations in which one party is more informed than another, because of the possession of private information.

When Approaching a Bank for a Loan,the Borrower Has Better