Business, 07.11.2019 06:31 Doremon

Why are financial intermediaries willing to engage in information collection activities when investors in financial instruments may be unwilling to do so?
a. decisions made by financial intermediaries are public knowledge, while investments made with financial instruments are not.
b. the free-rider problem reduces gains for financial intermediaries more than it does for investors in financial instruments.
c. banks make private loans; their conclusions on who is creditworthy are not made public.
d. credit information is asymmetric for investors but not for financial intermediaries.

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