Eurobanks are essentially intermediaries

Explain how usury laws can distort the market for funds. What is the most likely result if a usury law is passed and enforced?

What will be an ideal response?

Adverse selection:

A. refers to the tendency for people with higher risk to be drawn toward insurance. B. can result in failure to complete transactions that would have been possible if both sides had the same information. C. occurs when buyers and sellers have different information about the riskiness of a situation. D. All of these statements are true.