Question: a) Distinguish between adverse selection and moral hazard with suitable examples b) How much would you pay for a Treasury bill that matures in 182

a) Distinguish between adverse selection and moral hazard with suitable examples
b) How much would you pay for a Treasury bill that matures in 182 days and pays $10,000 if you require a 1.8% discount rate?
c) Briefly describe the key assumption, implication and conclusion of the Pure Expectations theory.

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