Adverse selection is a barrier to financing global growth because: OPTIONS: of the differences between financing using loans, portfolio investment and foreign direct investment. there is the possibility that the funds are used for riskier behavior than the lender agreed to. firms sometimes have trouble determining whether they need funds or not. if investors have trouble identifying high-risk firms they may be unwilling to lend funds to creditworthy firms.

Adverse selection is a barrier to financing global growth because: OPTIONS: of the differences between financing using loans, portfolio investment and foreign direct investment. there is the possibility that the funds are used for riskier behavior than the lender agreed to. firms sometimes have trouble determining whether they need funds or not. if investors have trouble identifying high-risk firms they may be unwilling to lend funds to creditworthy firms.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter5: Business And Economic Forecasting

Section: Chapter Questions

Problem 3.1CE

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