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The authors' analysis of adverse selection indicates that financial intermediaries Question 2 options: A) overcome free-rider problems by holding nontraded loans. B) must buy securities
The authors' analysis of adverse selection indicates that financial intermediaries
Question 2 options:
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| A) | overcome free-rider problems by holding nontraded loans. |
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| B) | must buy securities from corporations to diversify the risk that results from holding nontradable loans. |
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| C) | have not been very successful in dealing with adverse selection problems in financial markets. |
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| D) | do all of these. |
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| E) | do only overcome free-rider problems by holding nontraded loans and must buy securities from corporations to diversify the risk that results from holding nontradable loans. |
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