Analysis of Adverse Selection Indicates That Financial Intermediaries,especially Banks

question 83

Multiple Choice

Analysis of adverse selection indicates that financial intermediaries,especially banks

• A)have advantages in overcoming the free-rider problem,helping to explain why indirect finance is a more important source of business finance than is direct finance.
• B)despite their success in overcoming free-rider problems,nevertheless play a minor role in moving funds to corporations.
• C)provide better-known and larger corporations a higher percentage of their external funds than they do to newer and smaller corporations which rely to a greater extent on the new issues market for funds.
• D)must buy securities from corporations to diversify the risk that results from holding non-tradable loans.

Explain the stages of moral reasoning according to Kohlberg.

Discuss the significance of early attachment and its effects on later relationships.

Understand the implications of adolescent development on social relationships and self-regulation.

Examine the role of peers and social interactions in adolescent development.

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Definitions:

Brain Operation

Surgical intervention aimed at treating brain-related conditions or injuries, often involving the removal or repair of brain tissue.

Billion

A number representing a thousand million (1,000,000,000) in the American and modern British numeric system.

Neurotransmitters

Chemicals in the brain that transmit signals from one neuron to another across synapses.

Neural Impulse

An electrical signal that travels along the axon of a neuron, transmitting information between the brain and the body.