7- What steps can be taken by both individuals and companies to generally reduce the cost of external Financing?
1-An inequality in knowledge between two financial parties is called ___________ __________.
symmetrical information ignorance asymmetric information asymmetric investing asymmetric lending
2-When bad credit risks are the ones who most actively seek out a loan they are also the ones most likely to produce an __________ ___________.
immoral outcome unexpected profit adverse outcome adverse rate of return adverse interest rate
3-Asymmetric information and the adverse selection and moral hazard concepts are also crucial problems for the ________________.
health industry professional sports industry automobile industry insurance industry technology industry
4-Important impediments to well-functioning financial markets are created by adverse selection and moral hazard and ___________________ can alleviate these problems.
stock markets financial advisors savants financial intermediaries
5-Improving _________________ is a key role for financial intermediaries because they help financial markets channel funds to people that are a better investment risk.
Economic growth economic expansion economic ineptitude the inflation rate economic efficiency
6-Lending to individuals; ________________ can be minimized because lenders can check the loan applicantâs credit files and credit scores, their employment history, and with the permission of the borrowers, lenders can even verify their income with the internal revenue service.
moral hazard adverse selection inverse selection prudent selection guessing
7- What steps can be taken by both individuals and companies to generally reduce the cost of external Financing?
1-An inequality in knowledge between two financial parties is called ___________ __________.
symmetrical information ignorance asymmetric information asymmetric investing asymmetric lending
2-When bad credit risks are the ones who most actively seek out a loan they are also the ones most likely to produce an __________ ___________.
immoral outcome unexpected profit adverse outcome adverse rate of return adverse interest rate
3-Asymmetric information and the adverse selection and moral hazard concepts are also crucial problems for the ________________.
health industry professional sports industry automobile industry insurance industry technology industry
4-Important impediments to well-functioning financial markets are created by adverse selection and moral hazard and ___________________ can alleviate these problems.
stock markets financial advisors savants financial intermediaries
5-Improving _________________ is a key role for financial intermediaries because they help financial markets channel funds to people that are a better investment risk.
Economic growth economic expansion economic ineptitude the inflation rate economic efficiency
6-Lending to individuals; ________________ can be minimized because lenders can check the loan applicantâs credit files and credit scores, their employment history, and with the permission of the borrowers, lenders can even verify their income with the internal revenue service.
moral hazard adverse selection inverse selection prudent selection guessing
