Section Two (5%) 7 N; n% F7 c+ `# v
Directions: Translate the following sentences into Chinese. Write your
- ?- }0 t. e' v6 o translation on the blank space.
" r9 c2 {% }6 q 1. Asymmetric information is present in loan markets because lenders have less information about the investment opportunities and activities of borrowers than borrowers do. This situation leads to two information-producing activities by banks and other financial institutions, screening and monitoring. Indeed, Walter Wriston, a former head of Citicorp, the largest bank corporation in the United States, was often quoted as stating that the business of banking is the production of information. |