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4.4.2 Market failure in the financial sector

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Question 3

Which one of the following is the most likely to cause market failure in financial markets?

Financial advisers having much greater knowledge of complex pension assets than their retail clients

Commercial banks increasing interest rates on loans to high-risk startup businesses

Credit rating agencies publishing highly accurate, publicly accessible risk profiles of corporate bonds

Investment companies aligning their managers' bonuses with long-term portfolio performance

4.4.2 Market failure in the financial sector Questions

  1. A Level
  2. /Economics
  3. /4.4.2 Market failure in the financial sector