ECO 303 - Because of asymmetric information
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ECO 303 - Because of asymmetric information 1
Dernières notes et résumés ECO 303 - Because of asymmetric information
Question 1) Because of asymmetric information, the failure of one bank can lead to runs on other banks. This is the A) too-big-to-fail effect. B) moral hazard problem. C) adverse selection problem. D) contagion effect. 2) During the boom years of the 1920s, bank failures were quite A) uncommon, averaging less than 30 per year. B) uncommon, averaging less than 100 per year. C) common, averaging about 600 per year. D) common, averaging about 1000 per year. 3) In the early stages of the 1980s b...
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ECO 303 - Because of asymmetric information•ECO 303 - Because of asymmetric information
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Question 1) Because of asymmetric information, the failure of one bank can lead to runs on other banks. This is the A) too-big-to-fail effect. B) moral hazard problem. C) adverse selection problem. D) contagion effect. 2) During the boom years of the 1920s, bank failures were quite A) uncommon, averaging less than 30 per year. B) uncommon, averaging less than 100 per year. C) common, averaging about 600 per year. D) common, averaging about 1000 per year. 3) In the early stages of the 1980s b...