Question 15 A lender who wants to avoid the problem of adverse selection could OA) charge a very high interest rate and assume all loan applicants are high risk OD) only lend by issuing credit cards. B) charge the same average interest rate to all borrowers. OC) charge a low interest rate and make the applicant prove they warrant the low rate by providing information. Question 16. 1.5 pts Information asymmetry is generally encouraged by: OA) Regulators, issuers of quality securities, purchasers of quality securities D) Regulators, issuers of all securities, purchasers of quality securities B) Regulators, issuers of all securities, purchasers of all securities OC) Regulators, issuers of quality securities, purchasers of all securities 1.5 pts Question 17 1.5 pts The growth of the fintech sector has generally resulted in OA) Greater information asymmetry, particularly adverse selection in financial markets as a result of many diverse products now available OC) Increased the need for greater financial market regulation as a result of increased information asymmetry it causes, both through adverse selection and moral hazard O DI Lower information asymmetry in terms of quantity and duration OB) Greater information asymmetry, particularly moral hazard in financial markets as a result of many diverse products now available Question 18 1.5 pts Commercial paper refers to D) unsecured short-term debt issued by corporations and governments. C) short-term collateralised foxed-income securities issued only by governments OB) any debt security with a maturity longer than one year. OA) the financial publications read by the executives of public corporations