Question: (a) Explain the problems of adverse selection and moral hazard caused by asymmetric information. How can financial intermediaries alleviate those problems? (b) Explain the Diamond

(a) Explain the problems of adverse selection and moral hazard caused

(a) Explain the problems of adverse selection and moral hazard caused by asymmetric information. How can financial intermediaries alleviate those problems? (b) Explain the Diamond model of delegated monitoring

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