In Financial Markets,asymmetric Information Exists When

question 90

Multiple Choice

In financial markets,asymmetric information exists when

• A)one party to a transaction has more knowledge of relevant details than the other does
• B)both parties to a transaction have less knowledge of relevant details than the Fed does
• C)lenders know more about the borrowers than the borrowers know about themselves
• D)all parties to a transaction have exactly the same information
• E)all the information which the parties have is inaccurate

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Definitions:

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A record in accounting that shows the financial transactions affecting the accounts of a business.