When there's asymmetric information, who tends to have the better information?
A)lender
B)borrower
C)intermediary
D)equally likely to be the borrower or the lender

Question

Quizplus · Accepted Answer

The borrower typically has better information about their own financial situation and the potential risks associated with their need for borrowing, leading to a situation of asymmetric information where the lender is at a disadvantage.

When There's Asymmetric Information, Who Tends to Have the Better