When the lender and the borrower have different amounts of information regarding a transaction, ____________is said to exist.
A. adverse selection
B. asymmetric information
C. moral hazard
D. fraud
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When the potential borrowers who are the most likely to default are the ones most actively seeking a loan, _____________is said to exist.
A. asymmetric information
B. adverse selection
C. moral hazard
D. fraud
Financial institutions include:_____________________
A. depository institutions
B. investment intermediaries
C. contractual saving institutions
D. All of the above