Questions from Financial Markets


Q: How can the existence of asymmetric information provide a rationale for government

How can the existence of asymmetric information provide a rationale for government regulation of financial markets?

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Q: Would you be more willing to lend to a friend if she

Would you be more willing to lend to a friend if she put all of her life savings into her business than you would if she had not done so? Why?

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Q: Rich people often worry that others will seek to marry them only

Rich people often worry that others will seek to marry them only for their money. Is this a problem of adverse selection?

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Q: What are the other important financial intermediaries in the economy besides banks

What are the other important financial intermediaries in the economy besides banks?

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Q: How does the free-rider problem aggravate adverse selection and moral

How does the free-rider problem aggravate adverse selection and moral hazard problems in financial markets?

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Q: Explain how the separation of ownership and control in American corporations might

Explain how the separation of ownership and control in American corporations might lead to poor management.

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Q: Describe two conflicts of interest that occur when underwriting and research are

Describe two conflicts of interest that occur when underwriting and research are provided by a single investment firm.

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Q: Describe two conflicts of interest that occur in accounting firms.

Describe two conflicts of interest that occur in accounting firms.

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Q: Which provisions of Sarbanes-Oxley do you think are beneficial,

Which provisions of Sarbanes-Oxley do you think are beneficial, and which are not?

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Q: Which provisions of the Global Legal Settlement do you think are beneficial

Which provisions of the Global Legal Settlement do you think are beneficial, and which are not?

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