How does the existence of asymmetric information provide a


a. Would adverse section and moral hazard still arise in financial markets if information was not asymmetric? Explain.

b. How does the existence of asymmetric information provide a rationale for government regulation of financial markets?

c. What steps can the government take to reduce asymmetric information problems and help the financial system function more smoothly and efficiently?

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Basic Computer Science: How does the existence of asymmetric information provide a
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