Problem
1. What steps can the government take to reduce asymmetric information problems and help the financial system function more smoothly and efficiently?
2. How can asymmetric information problems lead to a bank panic?
3. Why do governments provide safety nets for bank depositors and what are their consequences?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.