60/10. Give an example of how the problem of adverse selection might prevent you from getting financing for something you want to do. Can you think of a way of overcoming the problem?
60/12. Why is it that a country's postage stamps are not as good a medium of exchange as its paper currency?
Note: Please correspond the solutions with the questions.© BrainMass Inc. brainmass.com March 4, 2021, 8:22 pm ad1c9bdddf
1. In credit card companies, those who pay on time are usually penalized for the losses incurred from people who do not pay on time. Therefore, when a person with even good credit applies for a loan for ...
The solution discusses adverse selection and currency mediums.