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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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Answer:

1,040,000

Explanation:

We can calculate the money will Kalen need to have accumulated at age forty-five by dividing the annual birthday payments by the effective interest.

DATA

Annual birthday payments = A = $40,000

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Calculation

Value at age 45 = A / i + Co

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ella [17]

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C

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Suppose there are only two firms that sell smartphones: Flashfone and Pictech. The payoff matrix that follows shows the profit (
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Answer:

Flashfone and Pictech

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             High     8   8        3  10

Flashfone

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b) By acting at the Nash equilibrium and pricing their smartphones high, Pictech and Flashfone achieve a payoff of $8 million respectively.  This payoff level does not put any of the two firms at a disadvantage.

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