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Author Question: An informed party can use ________ to give information to an uninformed or lesser-informed party. ... (Read 70 times)

washai

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on: Jul 1, 2018
An informed party can use ________ to give information to an uninformed or lesser-informed party.
 
  A) signaling
  B) screening
  C) an individual mandate
  D) market noise

Question 2

A financial services company offers to pay you 1,000 a year for life in exchange for 20,000 today. What factors affect your decision to take this offer?
 
  What will be an ideal response?


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trog

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Reply #1 on: Jul 1, 2018
Answer to Question 1

A

Answer to Question 2

This policy has an internal rate of return of 1/20 = 5. If the interest rate exceeds 5, then there are better investments elsewhere. If the interest rate is less than 5, this is a good deal.


washai

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Reply 2 on: Jul 1, 2018
Excellent

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Reply 3 on: Yesterday
Gracias!

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