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    Financial System and the Economy Principles
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    Exam 8: An Introduction to Financial Intermediaries and Risk
  5. Question
    Asymmetric Information, Adverse Selection, and Moral Hazard All Lead to an Increase
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Asymmetric Information, Adverse Selection, and Moral Hazard All Lead to an Increase

Question 87

Question 87

Multiple Choice

Asymmetric information, adverse selection, and moral hazard all lead to an increase in a bank's


A) default risk.
B) interest rate risk.
C) liquidity risk.
D) foreign exchange risk.

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