Moral hazard is a barrier to financing global growth because
A. if investors have trouble identifying high-risk firms they may be unwilling to give money to creditworthy firms.
B. firms sometimes have trouble determining whether they need funds or not.
C. of the differences between financing using loans, portfolio investment and foreign direct investment.
D. there is the possibility that the funds are used for riskier behavior than the lender agreed to.
Answer: D
You might also like to view...
The coefficient of determination is the proportion of the variation that is not explained by the regression model
Indicate whether the statement is true or false
The face value of a bond is
A) the dollar amount that a person would receive if he or she were to sell the bond. B) the dollar amount that a person would receive if he or she were to buy the bond. C) the total value of payments that will be made over the course of the bond's life. D) the dollar amount of the bond's final payment at maturity.
Shift to the left or right for supply: number of sellers decreases
What will be an ideal response?
Refer to the above table (figures in billions). The nominal GDP for 2020 is
A. $4819.6 billion. B. $4091.3 billion. C. $5677.5 billion. D. uncertain without more information.