What method is often used when both parties want to eliminate information asymmetry?

A. Statistical discrimination.
B. Signaling.
C. Moral hazard.
D. Screening.

Answer: B

Economics

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A lender who is worried that its cost of funds might rise during the term of a loan it has made can hedge against this rise without eliminating the chance to profit from a decline in the cost of funds by

A) buying futures contracts on Treasury bills. B) selling futures contracts on Treasury bills. C) buying put options on Treasury bills. D) buying call options on Treasury bills.

Economics

The new growth theory examines the role of

A) technology in economic growth. B) natural resources in economic growth. C) exports in economic growth. D) government in economic growth.

Economics