Janet was unable to obtain auto insurance in the voluntary insurance market. She was contacted by the state insurance department and notified that XYZ Insurance would be her insurer

Miller and Modigliani also studied dividend policy and determined that in their world of perfect capital markets (no taxes, no bankruptcy costs, no asymmetric information) that dividend policy DOES matter

Indicate whether the statement is true or false

In the configuration of an efficient financial system architecture, both banks and capital markets offer lending to firms

Borrowers who pose relatively onerous asset-substitution moral hazard prefer (i) financing, while borrowers who pose less serious moral hazards go directly to (ii). (i) (ii) a. capital market banks b. bank capital markets