An example of the problem of ________ is when a corporation uses the funds raised from selling bonds to fund corporate expansion to pay for Caribbean cruises for all of its employees and their families
A) adverse selection
B) moral hazard
C) risk sharing
D) credit risk
B
You might also like to view...
Vault cash is a(an)
A) liability of the Fed and is counted as reserves. B) asset of the Fed and is counted as reserves. C) liability of the Fed and is not counted as reserves. D) asset of the Fed and is not counted as reserves.
The law of increasing opportunity costs causes the production possibilities curve to:
a. be a straight line. b. slope upwards. c. have a bowed-out shape. d. shift inward.
The apparent stickiness of the price of goods sold by oligopolists can be explained by the
a. contestable markets model. b. sales maximization model. c. kinked demand curve model. d. entry deterrence model.
The theory of liquidity preference is most helpful in understanding
a. the wealth effect. b. the exchange-rate effect. c. the interest-rate effect. d. misperceptions theory.