Adverse selection is a problem associated with equity and debt contracts arising fromA.the
Adverse selection is a problem associated with equity and debt contracts arising from
A.the lenders' ability to legally require sufficient collateral to cover a 100% loss if the borrower defaults
B.the lenders' relative lack of information about the borrowers' potential returns and risks of his investment activities
C.the borrowers' lack of incentive to seek a loan for highly risky investments
D.none of the above