题目内容

Ifbadcreditrisksaretheoneswhomostactivelyseekloansand,therefore,receivethemfromfinancialintermediaries,thenfinancialintermediariesfacetheproblemof

A. moralhazard.
B. adverseselection.
C. free-riding.
D. costlystateverification.

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Theproblemcreatedbyasymmetricinformationbeforethetransactionoccursiscalled_____,whiletheproblemcreatedafterthetransactionoccursiscalled_____.

A. adverseselection;moralhazard
B. moralhazard;adverseselection
C. costlystateverification;free-riding
D. free-riding;costlystateverification

Someoftheproblemsthatcausefinancialrepressionindevelopingandtransitioneconomiesinclude

A. poorlegalsystems.
B. strongaccountingstandards.
C. privateownershipofbanks.
D. excessivegovernmentregulation.

Financialcrises

A. aremajordisruptionsinfinancialmarketsthatarecharacterizedbysharpdeclinesinassetpricesandthefailuresofmanyfinancialandnonfinancialfirms.
B. occurwhenadverseselectionandmoralhazardproblemsinfinancialmarketsbecomemoresignificant.
C. frequentlyleadtosharpcontractionsineconomicactivity.
D. alloftheabove.

Solutionstothemoralhazardprobleminclude

A. highnetworth.
B. monitoringandenforcementofrestrictivecovenants.
C. greaterrelianceondebtcontractsandlessonequitycontracts.
D. alloftheabove.

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