In some cities, newspapers publish a weekly list of restaurants that have been cited for health code violations by local health inspectors. What information problem is this feature designed to solve, and how?
Answer to relevant QuestionsWhat problem associated with asymmetric information was central to Bernard Madoff’s success in cheating so many investors for so long?Your parents give you $2,000 as a graduation gift and you decide to invest the money in the stock market. If you are risk averse, should you purchase some stock in a few different companies through a web site with low ...Financial intermediation is not confined to bank lending but is also carried out by non-bank firms such as mutual fund companies. How do mutual funds help overcome information problems in financial markets?Deflation raises the real burden of repaying fixed-rate debt. Japan has recently experienced a long deflation.a. Plot the percent change from a year ago of consumer prices in Japan (FRED code: JPNCPIALLQINMEI) and discuss ...Looking again at Bank A and Bank B in Problem, based on the information available, which bank do you think is at the greatest risk of insolvency? What other information might you use to assess the risk of insolvency of ...
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