Exam 9: Transactions Costs, Asymmetric Information, and the Structure of the Financial System

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The free-rider problem faced by private information-collection firms results in their

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Which of the following does NOT represent a way in which financial intermediaries take advantage of economies of scale?

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In the late 2000s, which source of funds for corporations grew the most?

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What are the three key features of the financial system that result from the existence of transactions and information costs?

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A part of the Jumpstart Our Business Startups (JOBS)Act:

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Moral hazard arises from

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The presence of transactions costs and information costs

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Financial intermediaries reduce transactions costs by

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How is the lemons problem in the used car market an example of asymmetric information?

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The "lemons problem" exists in the market for goods because

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Why do higher interest rates increase adverse selection problems in the loan market?

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With regard to crowd funding, all of the following accurately describe "qualified investors" EXCEPT:

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How does adverse selection affect the willingness of corporations to issue stock?

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Credit rationing refers to

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Which of the following is NOT a company that collects information on individual borrowers and sells it to savers?

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Moody's Investors Service is able to make a profit because

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The assumption of asymmetric information means that

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How do high interest rates increase the risk of adverse selection in the bond market?

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How does the principal-agent problem increase the possibility of moral hazard?

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Government regulations requiring firms that desire to sell securities in financial markets to disclose all available information

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