Asymmetric Information Before a Transaction Takes Place Generates the Problem

question 152

Multiple Choice

Asymmetric information before a transaction takes place generates the problem of

• A) bank runs.
• B) irrational behavior.
• C) moral hazard.
• D) adverse selection.

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Definitions:

Cybercrime

Any criminal action perpetrated primarily through the use of a computer.

Social Networking

A means by which people use the Internet to communicate and share information among their immediate friends and to meet and connect with others through common interests, experiences, and friends.

Phishing

The process of sending e-mail messages to lure Internet users into revealing personal information such as credit card or Social Security numbers or other sensitive information that could lead to identity theft.

Script Virus

A type of malware that is executed through a scripting language, capable of infecting multiple files and spreading across networks.