Asymmetric Information in Financial Markets Exists When

question 41

Multiple Choice

Asymmetric information in financial markets exists when:

• A)borrowers reveal their financial details to banks before borrowing funds.
• B)borrowers know more about their ability to repay loans than lenders do.
• C)lenders know more about borrowers than borrowers know about themselves.
• D)borrowers pay off a loan before it is due.
• E)borrowers and lenders have equal information about borrower creditworthiness.

---

Definitions:

Vestibular Sense

The sensory system that provides the leading contribution to the sense of balance and spatial orientation for the purpose of coordinating movement with balance.

Kinesthesia

Kinesthesia is the sensory ability to perceive and recognize the movement and position of one's body and limbs, without using sight.

Deactivation

The process of turning off or disabling a system or chemical reaction.

Stimulus Energies

Various forms of energy, such as light, sound, and touch, that can elicit a response from an organism or a sensor.