Moral hazard caused by regulation can only be removed from financial transactions if:

Related MCQs

• The presence of in financial markets leads to adverse selection and moral hazard problems that interfere with the efficient functioning of financial markets.
• Statutory regulation is likely to create larger compliance costs than self-regulation because:
• Financial intermediaries can substantially reduce transaction costs per dollar of transactions because their large size allows them to take advantage of
• In financial transactions, the risk that there will be no profit in selling of this asset is classified as
• The regulation of the banking industry is of particular importance in modern economies because:
• Asymmetric information can lead to widespread collapse of financial intermediaries, referred to as a
• ----------can only trade through their account or on account of their clients and however clear their trade through PCMs/STCMs.
• Which of the following is not an institutional credit rating agency in Indian financial system?
• Which of the following is a financial asset
• Financial institutions are also known as ........................