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Q16. The presence of ________ in financial markets leads to adverse selection and moral hazard problems that interfere with the efficient functioning of financial markets.

Q16. The presence of ________ in financial markets leads to adverse selection and moral hazard problems that interfere with the efficient functioning of financial markets.

a.

None of the answers is correct.

b.

symmetric information

c.

costly state verification

d.

free-riding

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