Terms
40 new/unreviewed 40 total
Term
What is the main rationale for financial regulation?
Definition
To address problems caused by asymmetric information
New/Unreviewed
Term
What is asymmetric information in finance?
Definition
A situation where one party to a transaction has more or better information than the other
New/Unreviewed
Term
How does adverse selection occur in financial markets?
Definition
It arises before a transaction when those most likely to produce an undesirable outcome are the ones most likely to seek out loans or insurance.
New/Unreviewed
Practice Tests
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