Asymmetric information before a transaction takes place generates ...

[vHAUNG6011]

Asymmetric information before a transaction takes place generates the problem of
 
  A) moral hazard. B) adverse selection.
  C) bank runs. D) irrational behavior.

Question 2

According to this Application, Janet L. Yellen, the Vice-Chair of the Board of Governors, believes that ________ in worldwide demand and ________ of supply were the primary cause of the worldwide increase in commodity prices.
 
  A) decreases; shortages B) increases; surpluses
  C) increases; shortages D) decreases; surpluses

[debra928]

Answer to Question 1

B

Answer to Question 2

C

[vHAUNG6011]

YES! Correct, THANKS for helping me on my review

[Sarahjh]

Excellent