Question

In the context of asymmetric information, what is

Q: Answer-In the context of asymmetric information, what is 'screening'?

Screening involves efforts by the less informed party to gather information about the product or service to reduce information asymmetry and make more informed decisions.

'screening'?

A A method where one party gathers information to reduce information asymmetry

B A process of selecting high risk individuals for insurance

C A strategy to increase market inefficiency

D A way to enhance adverse selection

E A regulatory requirement for financial markets

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