Which of the following statement is untrue?
A) assets equal liabilities plus net worth
B) households and firms are lenders and borrowers in the flow of funds
C) government regulation is the major cause of asymmetric information problems
D) pension funds and insurance companies are financial intermediaries
Correct Answer:
Verified
Q25: The incentive to collect information is undermined
Q26: Which of the following is an example
Q27: Adverse selection exists because _.
A)moral hazard exists
B)asymmetric
Q28: Of all financial intermediaries which holds the
Q29: Asymmetric information discourages the movement of funds
Q31: The primary source of funds for commercial
Q32: If one economic agent possesses more information
Q33: The principal buyers in financial markets are
Q34: Providers of health care insurance require applicants
Q35: Financial firms whose loans are often $100
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