Explain the meaning of conflicts of interest (a type of moral hazard), and why they […]
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Month: February 2021
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Concept of moral hazard
Explain the meaning of the concept of moral hazard and why it explains that debt […]
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Moral hazard – Stocks and Debt contracts
Explain why moral hazard explains why stocks are not the most important source of financing […]
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Adverse selection in credit markets
Explain why the presence of adverse selection in credit markets explains the fact that collateral […]
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Why marketable securities?
Explain why marketable securities (debt and equity) are not the primary source of financing for […]
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Role of financial intermediaries
Explain the role of financial intermediaries by referring to the problem of high transaction costs […]
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8 basic facts about financial structure
List eight basic facts about financial structure throughout the world. 1 Stock is not the […]
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Nominal and the real Interest rate
Distinguish between the nominal and the real interest rate. Which one is more important and […]
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Explain the meaning of the following four types of credit market instruments
There are four basic types of credit market instruments, and the types of credit market […]
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Meaning and implications of the government “ printing” money
Explain the meaning and implications of the government “ printing” money. The main question here […]