Because of the Presence of Asymmetric Information Problems in Credit

question 57

Multiple Choice

Because of the presence of asymmetric information problems in credit markets,an expansionary monetary policy causes a ________ in net worth,which ________ the adverse selection problem,thereby ________ increased lending to finance investment spending.

• A)decline;increases;encouraging
• B)rise;increases;discouraging
• C)rise;reduces;encouraging
• D)decline;reduces;discouraging

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Definitions:

Cyber Crime

A crime that occurs online, in the virtual community of the Internet, as opposed to the physical world.

Mail Fraud Act

Legislation criminalizing the use of the postal service to commit fraudulent acts.

White-Collar Criminals

Individuals who commit crimes through non-violent means, typically involving fraud, embezzlement, or other forms of financial misconduct, often within their occupation.

Economic Espionage Act

A U.S. law that makes it a federal crime to steal or obtain trade secrets knowingly to benefit any foreign power.