Because of the adverse selection problem loading ... :
a. good credit risks are more likely to seek loans, causing lenders to make a disproportionate number of loans to good credit risks
b. lenders may refuse loans to individuals with high net worth because of their greater proclivity to 'skip town'
c. lenders will write debt contracts that restrict certain activities of borrowers
d. bad credit risks with a willingness to pay higher interest rates will be the majority seeking loans
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