The presence of _____ in financial markets leads to adverse selection and moral hazard problems that interfere with the efficient functioning of financial markets.

Posted by: Pdfprep Category: GLO_CWM_LVL_1 Tags: , ,

The presence of _____ in financial markets leads to adverse selection and moral hazard problems that interfere with the efficient functioning of financial markets.
A . non-collateralized risk
B . free-riding
C . asymmetric information
D . costly state verification

Answer: C