Question

​'The more collateral there is backing a​ loan, the less the lender has to worry about adverse​ selection.' Is this statement​ true, false, or​ uncertain? This statement is ▼ false true uncertain because collateral ▼ negates increases reduces the adverse selection problem.

Answer 1

This statement is true.

Step-by-step explanation:

The statement that "The more collateral there is backing a​ loan, the less the lender has to worry about adverse​ selection" is true because collateral reduces the adverse selection problem.