The "Lemons Problem" Exists Because of

question 79

Multiple Choice

The "lemons problem" exists because of

• A)transactions costs.
• B)economies of scale.
• C)rational expectations.
• D)asymmetric information.

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Definitions:

Straight Bond Value

The present value of a bond's future interest payments plus the value of its principal, assuming it does not come with any special features like options.