Asked by Simran Uppal on Sep 24, 2024
Verified
The Department of Education noticed that for loans granted to students without any strings,the average grade point average of the students decreases dramatically over time.Which one of the following can it use as a solution?
A) Renew the loans only if the students pass their courses
B) Renew the loans regardless of students' passing
C) Never renew the loans
D) Shut down the Department of Education
Department Of Education
A government agency responsible for national policies and programs that help Americans access quality education and learning opportunities.
Loans Granted
The act of giving money, property, or other material goods to another party in exchange for future repayment of the principal amount along with interest or other finance charges.
- Pinpoint approaches to diminish moral hazard in diverse settings, such as insurance and employment.
Verified Answer
CV
Christopher vincenzo1 day ago
Final Answer :
A
Explanation :
By renewing loans only if the students pass their courses, the Department of Education can motivate students to maintain a certain level of GPA and academic performance. This solution provides an incentive for students to take their studies seriously, and can help prevent a decrease in GPAs over time. Option B is not a viable solution, as it doesn't address the issue of declining GPAs. Option C is too extreme and could prevent deserving students from accessing higher education, while option D is clearly not a viable solution.
Learning Objectives
- Pinpoint approaches to diminish moral hazard in diverse settings, such as insurance and employment.
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