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QUESTION

Consider the market for small business loans. In the context of this market. How adverse selection impact lenders. How does adverse selection impact

Consider the market for small business loans. In the context of this market.

  1. How adverse selection impact lenders.
  2. How does adverse selection impact borrowers?
  3. In the context of this market provide 2 things that a lender could do to help minimize or reduce their fear of being victimized by adverse selection.
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