Which of the following regulatory actions most directly addresses information asymmetry in financial products?

Question

BlackTom AI · Accepted Answer

To tackle information asymmetry in financial products, we evaluate how each action changes what buyers can know before making a decision.
Option 1: Increasing disclosure requirements on the terms and conditions in financial contracts. This directly reduces information gaps by making more details about fees, risks, and features transparent, enabling buyers to compare products and assess true costs and benefits.
Option 2: Increasing capital requirements for financial institutions. While this can improve overall system safety and reduce risk-taking, it does not directly address the imbalance of information available to individual investors about specific products.
Option 3: Enforcing anti-trust regulation to prevent financial institutions from becoming too large. Antitrust aims at competition and market power, not at the immediate transfer of information to consumers, so it’s not a direct remedy for asymmetry in product information.
Option 4: Placing caps on interest rates financial institutions are permitted to charge. Interest rate caps affect pricing but do not inherently improve the disclosure or clarity of product terms, and may even obscure true cost structures if not paired with transparent disclosures.
In summary, options 2, 3, and 4 address broader regulatory or pricing concerns rather than directly reducing the information gap between product providers and consumers, whereas option 1 directly targets information transparency to mitigate asymmetry.

ERMCPS5250_006_2025_1 - EXTERNAL STAKEHOLDER REQUIREMENTS Quiz 1 - Introduction to Regulators

Which of the following regulatory actions most directly addresses information asymmetry in financial products?

查看解析

登录即可查看完整答案

类似问题

By acting as a delegated monitor, financial in termediaries reduce the degree of information imperfection and asymmetry between the ultimate suppliers and users of funds.

Which of these describes an example of asymmetric information in the bond market?

In a consumer society, many adults channel creativity into buying things

Economic stress and unpredictable times have resulted in a booming industry for self-help products

People born without creativity never can develop it

A product has a selling price of $20, a contribution margin ratio of 40% and fixed cost of $120,000. To make a profit of $30,000. The number of units that must be sold is: Type the number without $ and a comma. Eg: 20000

Which of the following statement regarding cost is correct:

Under the assumptions used in cost-volume-profit analysis, as the activity increases:

更多留学生实用工具

考试浏览器助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单