________ are asymmetric information problems that act as a barrier to efficient allocation of capital.
A)Asset prices
B)Credit imbalances
C)Financial frictions
D)Financial derivatives

Question

Quizplus · Accepted Answer

Financial frictions, such as adverse selection and moral hazard, create asymmetric information problems that can lead to faulty allocation of capital and hinder the efficient functioning of financial markets.

________ Are Asymmetric Information Problems That Act as a Barrier