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66
What are the two solutions to the "Asymmetric Information" problem?
1) Collateral
2) Long-term relationship b/w borrowers and lenders - small loans at first, then when a business establishes credit worthiness loans increase.
2) Long-term relationship b/w borrowers and lenders - small loans at first, then when a business establishes credit worthiness loans increase.
Flashcard info:
Author: savhighsmith
Main topic: Economics
Topic: History of Economics
School / Univ.: UGA
City: Athens
Published: 11.12.2010