Asymmetric information occurs when
A) buyers and sellers are not equally informed about the true quality of what they are buying and selling.
B) banks face an adverse selection problem with their borrowers.
C) borrowers covertly engage in activities that increase the probability of poor performance.
D) All of the above.
D
You might also like to view...
Are funds available on a credit card included in a definition of the money supply?
a. Yes, because these funds can be used to pay for goods and services. b. Yes, because these funds are included in M2. c. No, because these funds are hard to measure total credit card spending. d. No, because these funds are not a store of value.
International trade
A) harms consumers but helps exporting firms. B) helps consumers but harms exporting firms and their workers. C) helps consumers but hurts firms that are less efficient than their foreign competitors. D) helps consumers and firms that compete with their foreign competitors.