Question: At least one reference is required. -Primary sources are first-hand accounts such as interviews, advertisements, speeches, company documents, statements, and press releases published by the

At least one reference is required.

-Primary sources are first-hand accounts such as interviews, advertisements, speeches, company documents, statements, and press releases published by the company in question.

-Secondary sources come from peer-reviewed scholarly journals, such as the Journal of Management. You may use like JSTOR, Google Scholar, and Social Science Research Network to find articles from these journals. Secondary sources may also come from reputable websites with .gov, .edu, or .org in the domain. (Wikipedia is not a reputable source, though the sources listed in Wikipedia articles may be acceptable).

QUESTION 2 [20 MARKS] [UNIT 1]

(a) Based on the concept of asymmetric information, illustrate the difference between adverse selection and moral hazard.

[8 Marks]

(b) What is the purpose of having the financial safety nets? Discuss TWO (2) examples of the safety net measures that Malaysia currently adopts.

[6 Marks]

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