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Ebay Is an Online Auction Site Where Individual Buyers and Sellers

Question 125

Multiple Choice

Ebay is an online auction site where individual buyers and sellers receive feedback on their how well they conducted their transaction. This feedback is public available. What is the purpose of this feedback?


A) It is a signal that the buyer or seller is reliable.
B) To reduce credit risk of a faulty buyer
C) To reduce default risk of a faulty seller
D) It is a tool to prevent moral hazard.

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