Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

. Investment banks reduce the problem of ________ by ________. A. inflation; gat

ID: 2384486 • Letter: #

Question

. Investment banks reduce the problem of ________ by ________. A. inflation; gathering information about a particular firm B. inflation; reducing the amount of money that enters an economy C. moral hazard; withholding funds after an initial public offering is issued D. adverse selection; gathering information about a particular firm . Investment banks reduce the problem of ________ by ________. A. inflation; gathering information about a particular firm B. inflation; reducing the amount of money that enters an economy C. moral hazard; withholding funds after an initial public offering is issued D. adverse selection; gathering information about a particular firm

Explanation / Answer

While investing, investment bankers clearly read the all financial statements and other relevant financial contracts entered by the company before investing. A thorough analysis is done. Various key economic and operational performance indicators are checked.

Hence, correct option is (D)