Agency theory: how asymmetric information affects economic behavior Asymmetric Information in Finance Financial Structure Adverse selection: Before a transaction.
An Overview of the Financial System. 2 Function of Financial Markets 1. Allows transfers of funds from person or business without investment opportunities.
Economics 330 Money and Banking Lecture 8 and 9 Prof. Menzie Chinn TAs: Chikako Baba, Deokwoo Nam.
Financial Intermediation
© 2008 Pearson Education Canada8.1 Chapter 8 An Economic Analysis of Financial Structure.
…A healthy and vibrant economy requires a financial system that moves funds from people who save to people who have productive investment opportunities…
