Asymmetric information problems are less severe the __________ the borrowing firm, since there is __________ publicly available information about those firms.
A) larger; more
B) larger; less
C) smaller; more
D) smaller; less

Question

Quizplus · Accepted Answer

Larger firms tend to have more publicly available information, which reduces the severity of asymmetric information problems.

Asymmetric Information Problems Are Less Severe the __________ the Borrowing