Because conflicts of interest increase asymmetric information problems
A)the economy will not operate as efficiently.
B)loans will not be made.
C)banks will not be able to make a profit.
D)the financial markets will operate more smoothly.

Question

Quizplus · Accepted Answer

Conflicts of interest can lead to biased decision making and withholding of key information, resulting in inefficiencies in the economy as a whole.

Because Conflicts of Interest Increase Asymmetric Information Problems