Asymmetric information problems that act as a barrier to efficient allocation of capital are often described as ________.
A) financial treason
B) financial markets
C) financial frictions
D) financial allocations

Question

Quizplus · Accepted Answer

Asymmetric information problems result in financial frictions, which impede the efficient allocation of capital. Financial treason is not a commonly used term in finance, and financial markets and financial allocations do not accurately describe the specific issue of asymmetric information.

Asymmetric Information Problems That Act as a Barrier to Efficient