The Concept of Adverse Selection Helps to Explain All of the Following

question 42

Multiple Choice

The concept of adverse selection helps to explain all of the following EXCEPT

• A)why firms are more likely to obtain funds from banks and other financial intermediaries,rather than from the securities markets.
• B)why indirect finance is more important than direct finance as a source of business finance.
• C)why direct finance is more important than indirect finance as a source of business finance.
• D)why the financial system is so heavily regulated.

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Definitions:

Ethnology

A branch of anthropology that studies and compares the different cultures and peoples of the world, focusing on their social structures, traditions, and customs.

Cross-Cultural Comparative Research

A research methodology that compares cultural contexts to understand their differences and similarities, often used in anthropology, psychology, and sociology.

Paleoanthropology

The scientific study of ancient humans and their relatives through fossils and other physical remains, exploring human evolution and prehistory.

Biocultural Approach

An analytical framework combining biological and cultural perspectives to understand human behavior and adaptation to environments.