Lemon laws are an attempt to reduce __________ in used car ...

[SGallaher96]

Lemon laws are an attempt to reduce __________ in used car markets.
 a. symmetrical information
  b. adverse selection
  c. natural selection
  d. moral hazard
  e. the winner's curse

Question 2

In developing countries, it is not true that
 a. banks are often viewed with suspicion
  b. at the first sign of economic problems, many bank depositors withdraw their funds
  c. because banks cannot rely on a continuous supply of deposits, banks cannot make loans for extended periods
  d. if financial institutions fail to serve as intermediaries between savers and borrowers, the lack of funds for investment will make growth rates double
  e. the credit provided by banks as a percent of total output is one fifth that in high-income countries

[juicepod]

Answer to Question 1

B

Answer to Question 2

D

[SGallaher96]

Excellent

[Alyson.hiatt@yahoo.com]

TYSM