Which is not problem associated with asymmetric information

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Reference no: EM132990827

Problem 1: We have a line of credit with a local bank that our company uses for purchasing inventory. Suppose use this credit source to buy a new motorcycle for personal use without the bank's knowledge. Which of the following problems describes this situation?

A. Adverse selection
B. Tax evasion
C. Securities fraud
D. Moral hazard

Problem 2: Which of the following is NOT a problem associated with asymmetric information?

A. Moral hazard
B. Exchange rate risk
C. Adverse selection

Reference no: EM132990827

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