The concept of adverse selection helps to explain

Question 7 options:

A)	which firms are more likely to obtain funds from banks and other financial intermediaries, rather than from the securities markets.
B)	why indirect finance is more important than direct finance as a source of business finance.
C)	why direct finance is more important than indirect finance as a source of business finance.
D)	only which firms are more likely to obtain funds from banks and other financial intermediaries, rather than from the securities markets and why indirect finance is more important than direct finance as a source of business finance.
E)	only which firms are more likely to obtain funds from banks and other financial intermediaries, rather than from the securities markets and why direct finance is more important than indirect finance as a source of business finance.