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Reading Comprehension: Structure Questions

Which of the following best describes the function of the second paragraph?

That's right!

[[snippet]]

The institutions described in the second paragraph are an attempt to solve the problems created by asymmetric information (the problem presented in the first paragraph).

Incorrect.

[[snippet]]

We are never informed of the effect that the institutions introduced in the second paragraph have had upon the effects of asymmetric information.

Incorrect.

[[snippet]]

The second paragraph never describes any possible negative effects of the institutions discussed in the second paragraph.

Incorrect.

[[snippet]]

The second problem does not describe the problem of asymmetric information further but shows possible solutions for this problem.

Incorrect.

[[snippet]]

The author does not express any opinion about the problem of asymmetric information but presents the information in a purely informative manner.

It expresses the author's viewpoint on a phenomenon introduced in the first paragraph.
It elaborates further on a problem introduced in the first paragraph.
It discusses the pros and cons of possible solutions to the problem introduced in the first paragraph.
It introduces phenomena which have worsened the problem introduced in the first paragraph.
It describes attempted solutions to the problem presented in the first paragraph.