Question

If the managers of a bank design a mortgage that they expect will appeal to safer borrowes but instead it appeals to riskier borrowers and leads to an economic loss. The loss is the result of A. Failure of self revelation B. Adverse selection C. Failure if screening D. Failure of signaling

Name: if the managers of a bank design a mortgage that they expect will appeal to safer borrowes but instead it appeals to riskier borrowers and leads to an economic loss the loss is the result of 95312
Uploaded: 2022-03-25T17:52:25-08:00
Duration: 22 s
Channel: Jennifer Stoner
Description: if the managers of a bank design a mortgage that they expect will appeal to safer borrowes but instead it appeals to riskier borrowers and leads to an economic loss the loss is the result of 95312

          If the managers of a bank design a mortgage that they expect will appeal to safer borrowes but instead it appeals to riskier borrowers and leads to an economic loss. The loss is the result of 
A. Failure of self revelation
B. Adverse selection
C. Failure if screening 
D. Failure of signaling

Added by Kimberly R.

Principles of Economics

Gregory Mankiw 8th Edition

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Solved by Expert Jennifer Stoner

03/25/2022

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The bank managers designed a mortgage product intended for safer borrowers, but it ended up attracting riskier borrowers instead. Show more…

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If the managers of a bank design a mortgage that they expect will appeal to safer borrowes but instead it appeals to riskier borrowers and leads to an economic loss. The loss is the result of A. Failure of self revelation B. Adverse selection C. Failure if screening D. Failure of signaling