Free rider problem is an issue that occurs when people who do not pay for information take advantage of the information that other people have paid for Banks reduce the free-rider problem in information production by OA making private, nontraded loans so other lenders cannot benefit from the information they have collected about the borrower OB. charging others for information about the financial condition of potential borrowers OC. buying tradable securities with their depositors' funds D. serving as an intermediary that holds scarcely any nontraded loans

Free rider problem is an issue that occurs when people who do not pay for information take advantage of the information that other people have paid for Banks reduce the free-rider problem in information production by OA making private, nontraded loans so other lenders cannot benefit from the information they have collected about the borrower OB. charging others for information about the financial condition of potential borrowers OC. buying tradable securities with their depositors' funds D. serving as an intermediary that holds scarcely any nontraded loans

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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