All of the Following Are Consequences of Adverse Selection on Good

question 78

Multiple Choice

All of the following are consequences of adverse selection on good firms EXCEPT

• A)the cost of external financing increases.
• B)firms need to rely more on internal funds.
• C)firms need to rely more on accumulated profits.
• D)firms will only be able to attain financing from the government.

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Definitions:

Across The Country

A phrase describing something that occurs or is present in various parts of a country.

Check 21

A federal law designed to enable banks to handle more checks electronically, which makes check processing faster and more efficient.

Electronically

Pertaining to technology related to the use and application of electronic devices and systems.

Federal Law

Legislation enacted by the national government of a country, which has precedence over state laws in areas specifically delegated to the national authority.