Once a financial institution has become * too big to fail" Select one: O a. You have the problem of adverse selection O b. You have the problem of moral hazard O c. You have no principal agent problem O d. You have a problem of imperfect information O e. All apply Which of the following is an example of indirect finance Select one: O a. Banks lending to each other in the overnight market O b. General Motors lends funds to IBM c. Joe borrows from his uncle O d. A business borrows money from a bank O e. None of the above Debt securities issued by the Canadian government in maturities of 3, 6 and 12 months are: Select one: O a. Commercial paper O b. T-bills O c. Repurchase Agreements O d. Treasury bonds O e. Treasury notes Judy and Mike both plan to buy life insurance. Judy does extreme and dangerous sports, while Mike is more likely to take up dangerous sports if he has insurance. From the perspective of the insurance company: Select one: O a. Judy represents the problem of moral hazard while Mike represents the problem of adverse selection. O b. Judy represents the problem of adverse selection while Mike represents the problem of moral hazard O c. Both are examples of moral hazard O d. Both are examples of adverse selection