What are some of the criticisms that have been levied on the World Bank and the International Monetary Fund concerning adverse selection and moral hazard?
What will be an ideal response?
The World Bank and International Monetary Fund usually place very loose conditions on loans and this increases adverse selection problems. Some economists argue that the private lenders and investors assume that the World Bank and International Monetary Fund will back up nations and will therefore lower their standards and make loans to less creditworthy nations. This contributes to international financial crises.
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Exchanges of stocks take place
A) in New York City only. B) in the principle financial city of each country, such as New York City for the United States and London for England. C) in a decentralized fashion around the world. D) in centralized physical locations known as stock exchanges and online through Internet brokers.
A stock is an obligation issued by a corporation that promises the holder to receive fixed annual interest payments and payment of the principal upon maturity
a. True b. False Indicate whether the statement is true or false