1. Describe how the structure of the Zambian financial system can be explained by the problem of asymmetric information.
2. Subsidiary A of Mega Corporation has net inflows in Australian dollars of A$1,000,000, while Subsidiary B has net outflows in Australian dollars of A$1,500,000. The expected exchange rate of the Australian dollar is $.55. What the net inflow or outflow is as measured in U.S. dollars?