When the financial system lacks the capability of making judgement about investment opportunities due to asymmetric information leading to potentially bad credit risks lending is subject to ?
A. adverse selection
B. moral hazard
C. social goods
D. hyperinflation
Related Questions on Monetary, Fiscal & Incomes Policy, & Inflation Mcqs
A. I and II only
B. III and IV only
C. I, II and III only
D. I, II , III and IV
A. I and II only
B. III and IV only
C. I, II and IV only
D. I, II and III only
A. I and II only
B. III and IV only
C. I, II and III only
D. I, II , III and IV
Which of the following is NOT true ?
A. Taxes on international trade are the major source of tax revenue for low-income countries with poor administrative capacity
B. import duties can restrict luxury goods consumption
C. several LDCs have used value-added taxes to raise a substantial fraction of revenues
D. Cascade tax a form of progressive tax, is dominant in DCs
A. indirect taxes
B. direct taxes
C. inelastic
D. value-added tax