Financial intermediaries
a. prevent risk sharing for the lender dash savers. prevent risk sharing for the lender-savers.
b. do not deal with asset transformation.
c. reduce transactions costs for lender dash savers and borrower dash spenders. reduce transactions costs for lender-savers and borrower-spenders.
d. exacerbate all of the problems caused by asymmetric information. an individual may find making a loan to another individual unprofitable due to the fact that
a. hiring a lawyer to write a loan contract used only once is cost-effective.
b. the ways to avoid asymmetric information are common knowledge.
c. transaction costs are low. transaction costs are low.
d. it is concentrating the loan risks. it is concentrating the loan risks.
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