The Main Reason That Markets for Finance Do Not Resemble

question 62

Multiple Choice

The main reason that markets for finance do not resemble simple auction markets, such as the market for wheat, is that

• A)markets for finance tend to be dominated by a few large lenders.
• B)because of asymmetric information, savers must spend resources to learn about borrowers.
• C)markets for finance are much more closely regulated by the government than are other markets.
• D)simple auction markets usually suffer from excess demand for their products.

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