Question

Symmetric information is the same as perfect information.

a) holds under the assumption of rational expectations.
b) is true only in efficient markets.
c) means that savers and borrowers have the same information.

Answer 1

The correct option is (C)

Step-by-step explanation:

The information is a critical aspect of any financial market. Transparency is all about having everybody the same information. The symmetric information is all about transparency and having the same information. It means that borrower's and savers have the same information. It helps to stop misconduct and inside trading. The symmetric information helps borrowers and savers to trust the market and invest.