An increase in asymmetric information that increases financial ...

[jCorn1234]

An increase in asymmetric information that increases financial frictions will tend to ________.
 
  A) increase the moral hazard and adverse selection problems in credit markets
  B) decrease financial frictions
  C) improve market efficiency
  D) decrease the moral hazard problem

Question 2

Collateralizable wealth is
 
  A) wealth in non-tangible assets.
  B) any asset that can be used to obtain a loan.
  C) wealth that increases and income increases.
  D) wealth based on mortgage lending.

[JaynaD87]

Answer to Question 1

A

Answer to Question 2

B