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marta [7]
4 years ago
6

Why are financial intermediaries willing to engage in information collection activities when investors in financial instruments

may be unwilling to do​ so?
Business
1 answer:
natta225 [31]4 years ago
8 0
<span>Investors in financial instruments who engage in information collection face a free-rider problem, which means other investors may be able to benefit from their information without paying for it. Individual investors, therefore, have inadequate incentives to devote resources to gather information about borrowers who issue securities. Financial intermediaries avoid the free-rider problem because they make private loans to borrowers rather than buy the securities borrowers have issued. Because they will reap all the benefits from the information they collect, their information collection activities will be more profitable. They, thus, have greater incentive to invest in information collection.</span>
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D. decline; increase

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Suppose that research finds a link between high fructose corn syrup (HFCS) and obesity, which then leads American consumers to s
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The new equilibrium from the information shows that sugar cane producers in Haiti benefited.

<h3>What is equilibrium?</h3>

It should be noted that equilibrium simply means balance that is when the supply of goods and demand are equal.

In this case, in the situation of free trade, the world price line is a horizontal lines. The fact that the consumers in the United States demanded more sugar cane product means that the sugar cane producers in Haiti benefited.

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3 0
2 years ago
In budgeting direct labor hours for the coming year, it is important to a.multiply production in units by the labor wage rate. b
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b.multiply production in units by the direct labor hours per unit

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By considering the units production and direct labor hours per unit we can get the budgeted direct labor hours which are to be considered as a estimated direct labor hours  

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