Answer Happy

Question AS Which one of the following statements is correct? А In the credit market, asymmetric information regarding the quality of the project leads to a principal-agent probleen, where the borrower is the principal and the lender is the agent B Providing collateral is a signal to the londer that the project is of sufficient quality to succeed С C The principal-agent problem can be resolved by writing a binding contract for the borrower to exert full effort D The principal-agent problem does not lead to credit rationing in the loan market E Credit rationing has no impact on income inequality