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:

Revised

Updated or altered from its original form, often to include new information or corrections.

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DSM-IV

The fourth edition of the Diagnostic and Statistical Manual of Mental Disorders, a guide for diagnosing mental disorders.

Appendix

A small tube-shaped sac attached to the lower end of the large intestine, whose function in humans is considered vestigial.