Increasing the Amount of Information Available to Investors Helps to Reduce

question 61

Multiple Choice

Increasing the amount of information available to investors helps to reduce the problems of ________ and ________ in the financial markets.

• A)adverse selection;moral hazard
• B)adverse selection;risk sharing
• C)moral hazard;transactions costs
• D)adverse selection;economies of scale

---

Definitions:

Increase Output

Actions or strategies aimed at boosting the amount of work, products, or results produced by a system, organization, or process.

Performance Opportunity

Opportunities provided within an organization for employees to demonstrate their abilities and potentially enhance their professional growth and career advancement.

Performance Deficiency

The gap between an employee's actual performance and the expected or required performance standards.

Uncertain Situation

Circumstances where outcomes are unpredictable or not guaranteed.