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​People, in​ general, do not lend money to one another to buy a house or a car​ because: A. they do not know about the capacity of other people to repay their debts. B. of information problems. C. they do not know about the effort other people will provide to repay their debts. D. All of the above.

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agustinsr99

Answer: ​People, in​ general, do not lend money to one another to buy a house or a car​ because: D. All of the above.

Explanation: It all comes down to information problems, assuming that all participants fully know the financial capacity of others would lend money because there would be no uncertainty and risk.

That is why certain requirements are requested when requesting loans at a bank.

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