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4 (20 MARKS) Financial economists argue that asymmetric information helps explain many of the features of financial contracts. Required a) b) Describe and discuss asymmetric

4 (20 MARKS) Financial economists argue that asymmetric information helps explain many of the features of financial contracts. Required a) b) Describe and discuss asymmetric information and the concepts of adverse selection and moral hazard. Explain clearly the differences between these concepts. (14 Marks) Provide an example on how each of these concepts would be managed in two (2) broad categories of financial intermediaries. (6 Marks)

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