Final answer:
The purchase of a computer is an example of a financial transaction, as it involves an exchange of money for goods. Finance companies facilitate such transactions, even with imperfect or asymmetric information.
Step-by-step explanation:
An example of a financial transaction is the purchase of a computer. Financial transactions involve an exchange of value, such as money, between parties. When you buy a computer, whether it's from a store or online, you are exchanging money for a physical item. Other examples of financial transactions include ordering flowers over the internet for a friend in a different city, buying a used laptop at a garage sale, or when an export sale to Germany results in a financial flow from Germany to the U.S. economy. These activities involve a clear financial component where money is transferred as payment for goods or services, making them financial transactions.
Finance companies, such as Bank of America Merrill Lynch Dealer Financial Services and Ford Motor Credit Company, participate in financial transactions by offering loans to consumers or buying installment contracts. They help facilitate transactions even in the presence of imperfect information or asymmetric information, where parties have incomplete or unequal knowledge about the transaction. Despite this imperfect information, mechanisms are in place to ensure these transactions are beneficial to both buyers and sellers.