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Banks Help to Overcome the Problem of Asymmetric Information by

question 226

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Banks help to overcome the problem of asymmetric information by


Definitions:

Consideration

The bargained-for exchange; what each party gets in exchange for his or her promise under a contract.

Authority

The power or right to make decisions, give orders, and enforce obedience.

Principal

The main party to a transaction, such as the owner of a business, or the amount of money loaned or invested, excluding interest or profits.

Power of Attorney

A legal document authorizing one person to act on another's behalf in legal or financial matters.

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