Explore BrainMass

Explore BrainMass

    Question about moral hazard and adverse selection

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    If banks face a problem in loan markets when bad credit risks are the ones most likely to seek bank loans, it is described as:

    a) moral hazard
    b) moral suasion
    c) adverse selection
    d) fraud
    e) Profit making trouble

    Which of the above options is correct? Is it moral hazard?

    © BrainMass Inc. brainmass.com December 15, 2022, 7:47 pm ad1c9bdddf

    Solution Summary

    The solution contains a multiple choice question about moral hazard and adverse selection.