Question 2 a. Suppose you are applying for a housing loan. The loan officer tells you that if you get the loan, the bank will keep the house title until you pay back the loan. Which problem of asymmetric information is the bank trying to solve? Explain your answer. (5 Marks) Which specific asymmetric information problem do credit rating agencies help to reduce in the bond market? Explain your answer. (5 Marks) Explain ONE (1) risk of adverse selection to Bank, and discuss TWO (2) strategies can bank use to manage the risk. (15 Marks) (TOTAL : 25 MARKS)