ii) In class, we went over empirical patterns and data regarding several features of real-world financial markets. Afterwards, we introduced economic arguments (based on transaction costs, moral hazard, and adverse selection) to explain why financial markets are characterized by these features. Describe two of the features of financial markets we saw in class, and provide the economic arguments (based on transaction costs and/or moral hazard and/or adverse selection) that explain why financial markets have the features you described (12.5 points)