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Principle of banking and finance

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Needing some help for these 3 questions on principle of banking and finance

A) Explain asymmetric information in lending/borrowing and discuss how adverse selection influences the lending decision of banks.

B) Explain how moral hazard affects equity contracts and discuss why moral hazard is lower for debt contracts compared to equity contracts.

C) Explain why loan contracts suffer less from free-riding problems compared to bonds or other public financing.

Reference no: EM133113703

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