One Problem with Conflicts of Interest Is That They Can

question 29

Multiple Choice

One problem with conflicts of interest is that they can reduce the ________ in financial markets,thereby increasing ________.

• A)quantity of information;financial institutions' profits
• B)quantity of information;asymmetric information
• C)quality of information;asymmetric information
• D)quality of information;financial institutions' profits

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Definitions:

Better Business Bureau Wise Giving Alliance

An organization that evaluates and accredits charities in the United States based on standards for charity accountability.

Earned-Income Strategies

Business activities initiated by nonprofit organizations that directly generate revenue as a result of the goods or services they offer, contributing to their financial sustainability.

Earned Income

Revenue generated from goods or services offered by an organization.

Partnerships

Cooperative relationships between people or groups, often formalized by agreements, working toward common goals or business ventures.