Test Content Page 9 of 10 Question 9 The following is a definition of : "when one party in a transaction is in possession of more information than the other. In certain transactions, sellers can take advantage of buyers because asymmetric information exists whereby the seller has more knowledge of the good being sold than the buyer". Adverse selection Moral hazard Asymmetric information None of the other options Unsecured business loans are usually to obtain, especially for start-ups which may be unable to offer assets against which to secure the loan, nor proof of a strong financial track record. This type of loan incurs rates than secured loans. less difficult, higher more difficult, higher more difficult, lower less difficult, lower