1) Given an asymmetric information problem, (1) how could a venture capital firm protect its equity investment from it? (2) Describe the problem.
2) The trend in bank supervision has moved away from a focus on capital requirements to a focus on risk management. True/False/Uncertain? Explain.
3) Specialization in lending helps to reduce an asymmetric information problem in lending, (1) describe the problem. (2) What are the advantages/disadvantages of specializing?