6)Samantha's restaurant just burned down, destroying all of her net worth, and she wants a loan to rebuild. Explain what type of asymmetric information problem this represents for the bank.

7) What are the two types of asymmetric information and what is the difference between them?

8) The recent bailout of AIG by the Federal Reserve and the Treasury Department is an example of what regulatory policy?

9) What is a direct placement of corporate bonds?