a) Using a clearly-labelled diagram, demonstrate and subsequently explain the flow of funds through direct and indirect
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a) Using a clearly-labelled diagram, demonstrate and subsequently explain the flow of funds through direct and indirect channels in the economy. (6 marks)
b) Capital Markets are not necessary efficient. This therefore gives rise to information asymmetry which results to undesirable effects in the operations of the market. Information asymmetry interferes with the operations of the markets and achievement of its role of financial mobilization and intermediation in the various sectors of the economy. Explain the term 'Adverse selection' and moral hazards' in relation to information Asymmetry
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Auditing A Practical Approach with Data Analytics
ISBN: 978-1119401742
1st edition
Authors: Raymond N. Johnson, Laura Davis Wiley, Robyn Moroney, Fiona Campbell, Jane Hamilton
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