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The problem of adverse selection helps to explain Select one: a. why banks prefer to make loans secured by collateral. b. why banks have a

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The problem of adverse selection helps to explain Select one: a. why banks prefer to make loans secured by collateral. b. why banks have a comparative advantage in raising funds for business firms c. why large firms are more likely to obtain funds from securities markets, than small firms do d. all of the above. e. Only B and C of the above The securities transactions, the price is the price that the dealer receive when they sell the securities. Select one: a. bid b. ask c. midpoint d. transaction

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