Problem
1. What role does the financial system play in promoting economic growth?
2. How does direct finance differ from indirect finance? Which form of finance is most important?
3. What is asymmetric information? What two asymmetric information problems hinder the operation of the financial system?
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.