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ECO 4223 Exam 1 Study Guide; Questions and Answers 100% Solved
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ECO 4223 Exam 1 Study Guide; Questions and Answers 100% Solved Financial Markets - markets that channel funds from those who have an excess of available funds to those with a shortage - also promote economic efficiency - channel funds from those without a productive use to those with a productive use but has shortage of money What promotes Economic Efficiency? Financial Markets Why do we need Financial Markets? 1. matching of borrowers and lenders 2. transaction costs --> time, energy, money 3. asymmetric information Asymmetric Information - adverse selection
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