question archive a) Discuss why businesses don't use marketable debt securities more extensively to finance their activities
a) Discuss why businesses don't use marketable debt securities more extensively to finance their activities
Subject:FinancePrice: Bought3
a) Discuss why businesses don't use marketable debt securities more extensively to finance their activities. (4 marks)
b) How does the free-rider problem aggravate the adverse selection and moral hazard
problems in financial markets? (3 marks)
c) Why should the bank balance its desire for liquidity against the increased earnings that can be obtained from less liquid assets such as loans?(3 marks)
