ABC is a mutual-fund company which bundles investors' funds together and makes investments. When ABC manages $1 million's assets, it hires one investment manager who makes investment strategies for its assets. When ABC manages $100 million's assets, it still hires one investment manager only. The manager simply multiplies the numbers in her investment strategies by 100 , and the investment return rates are as good as before. This is an example of of financial intermediaries. adverse selection moral hazard economies of scale knowledge is power Which of the following is most accurate about the adverse selection problem in the used car market? the adverse selection is caused by seller's insufficient information about the buyer's credit records Owners of bad cars are not willing to sell their cars in the market because they cannot compete with the good cars EVENTUALLY, only the average cars (among all of the used cars in society) will be sold in the used car market. none of the above is correct Question 10 0/0.3pt When talking about Adverse Selection, people usually compare the security markets to the used car markets. Which of the following is least accurate about analogies between these two markets regarding the Adverse Selection problem? good cars - good securities with high intrinsic values owners of used cars - . issuers of securities used car dealer - financial intermediary buyers of used cars - banks