Select a financial institution or market and discuss the causes of asymmetric information.
Describe real-world examples of adverse selection and moral hazard problems for your institution/intermediary or market.
Evaluate the impacts of adverse selection and moral hazard problems on your financial institution/intermediary or market.
Discuss a principal-agent problem in your financial institution/intermediary or market. A principal-agent problem is a moral hazard problem between managers and shareholders.
Analyze whether your financial institution/intermediary or market can reduce the adverse selection and/or moral hazard problems.
