In both bank-based and market-based financial systems, financial intermediation is of increasing importance due to its ability to address the market imperfection of?
Select ONE answer:
- Monopoly
- Asymmetric information
- Trade barriers
- Tariffs and quotas
Show your workings to arrive at your answer, and explain and justify your reasons:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 2
- Not correct
- Correct == > Financial intermediation overcomes the problem of asymmetric information associated with direct financing.
- Not correct
- Not correct
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