Financial intermediaries
a. prevent risk sharing for the lender dash savers. prevent risk sharing for the lender–savers.
b. do not deal with asset transformation.
c. reduce transactions costs for lender dash savers and borrower dash spenders. reduce transactions costs for lender–savers and borrower–spenders.
d. exacerbate all of the problems caused by asymmetric information. an individual may find making a loan to another individual unprofitable due to the fact that
a. hiring a lawyer to write a loan contract used only once is cost-effective.
b. the ways to avoid asymmetric information are common knowledge.
c. transaction costs are low. transaction costs are low.
d. it is concentrating the loan risks. it is concentrating the loan risks.

The new york times (nov. 30, 1993) reported that “the inability of opec to agree last week to cut production has sent the oil market into turmoil . . [leading to] the lowest price for domestic crude oil since june 1990.” why were the members of opec trying to agree to cut production? so they could save more oil for future consumption so they could lower the price so they could raise the price why do you suppose opec was unable to agree on cutting production? because each country has a different production capacity because each country experiences different production costs because each country has an incentive to cheat on any agreement the newspaper also noted opec’s view “that producing nations outside the organization, like norway and britain, should do their share and cut production.” what does the phrase “do their share” suggest about opec’s desired relationship with norway and britain? opec would like norway and britain to keep their production levels high. opec would like norway and britain to act competitively. opec would like norway and britain to join the cartel.