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1. What steps can the government take to reduce asymmetric information problems and help the financial system function more smoothly and efficiently? 2. How can

1. What steps can the government take to reduce asymmetric information problems and help the financial system function more smoothly and efficiently?

2. How can asymmetric information problems lead to a bank panic?

3. How does the free-rider problem aggravate adverse selection and moral hazard problems in financial markets?

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