All drop-downs have the same options, need all 4.

Match the following scenarios to the specific information problem that is being described. The scenario can describe an event that leads to a specific information problem or can describe actions intended to reduce an information problem. An answer choose can be used multiple times. Asset prices decline and credit [Choose spreads widen as evaluating the cred fire sale worthiness of borrowers becomes adverse selection more difficult. No information problem is being described. moral hazard An investment bank feels that their asymmetric information position as a "systemically important institution gives them some room to make risky bets that will be very profitable if they pay off. [Choose1 > The net worth of some banks and businesses decline, which reduces the information available about their strength as a borrower, Choose John does not keep up with the activities of the bank where he keeps a checking account. He figures his funds are safe due to FDIC protection