2. When the value of the British pound changes from $1.25 to $1.50, the pound has ____and the U.S. dollar has _____.

The
principal-agent
problem

The
concept of adverse selection helps to explain all of the following
except

The
presence of ________ in financial markets leads to adverse selection
and moral hazard  


problems
that interfere with the efficient functioning of financial markets.

The
current structure of financial markets can be best understood as the
result of attempts by financial market participants to

)
) If you default on your auto loan, your car will be repossessed
because it has been pledged as ________ for the loan.

One
purpose of regulation of financial markets is to

With
regard to external sources of financing for nonfinancial businesses
in the United States, which
of the following are accurate statements?

Of
the following sources of external finance for American nonfinancial
businesses, the least important is

A
situation when an asset price differs from its fundamental value is  


A)

According
to the efficient markets hypothesis, purchasing the reports of
financial analysts