Th4.4: Market Failure in the Financial Sector Flashcards

1
Q

What combination means financial services are prone to regular crises that cause significant damage to the real economy?

A

the combination of speculation and provision of genuine services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What are five examples of market failure in the financial sector?

A
asymmetric information
externalities
moral hazard
speculation and market bubbles
market rigging
How well did you know this?
1
Not at all
2
3
4
5
Perfectly