Homework questions:

$($Bond vs$.$ common stock$)$ Explain the main difference between a bond and a common stock.

$($Financial Markets$)$ What is the main function of financial markets?

$($Adverse Selection$)$ Lisa is planning to purchase a new house and is looking for a home loan that will give

her the lowest interest rate. Discuss how she can be affected by asymmetric information and adverse selection.

$($FinTech$)$ Use one example to analyze briefly how FinTech improves the efficiency of financial service.

$($Financial intermediaries$)$ How do financial intermediaries solve the problem of adverse selection?