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QUESTION 1

(a) Explain the meaning of asymmetric information, adverse selection and moral hazard and their implications on the role of commercial banks in the financial intermediation process.

(b) How do commercial banks address the problems of asymmetric information?

QUESTION 2

Discuss the main factors determining the level and term structure of interest rates.

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M9586105

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