Section Two (5%)
5 L6 v. H, m5 P$ o Directions: Translate the following sentences into Chinese. Write your Q8 X) Y: t* I
translation on the blank space. 0 n0 t; U; J+ Q6 I7 q* U
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. |