Which of the Following Is Not an Example of Asymmetric

question 8

Multiple Choice

Which of the following is not an example of asymmetric information:

• A) An investor is not aware of which shares of stock are good quality and which are bad
• B) Investors purchase shares with low prices since they do not know if higher priced stocks are better
• C) The receipient of a bank loan invests in new capital after having shared their plans with the bank
• D) The recipient of a bank loan spends all of the money on a fleet of corporate Rolls Royces

---

Definitions:

Cognitive Therapy

A form of psychotherapy that aims to change negative patterns of thinking or behavior that contribute to individuals' emotional distress.

Drug Therapy

The treatment of disease or disorder through the administration of pharmaceutical drugs, aiming to alleviate symptoms or cure the condition.

Side Effects

The often unintended and undesirable effects of a procedure or course of action, especially in the context of medication or medical treatment.

Antidepressant Drugs

Medications prescribed to alleviate symptoms of depression by affecting neurotransmitter levels in the brain.