The potential for recipients of a loan to engage in riskier behavior after receiving the financing is called
A. adverse hazard.
B. adverse selection.
C. moral selection.
D. moral hazard.
Answer: D
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To measure GDP by using the income approach, we must add all incomes and then ________ depreciation and ________ net taxes less subsidies
A) add; neither add nor subtract B) add; add C) add; subtract D) subtract; add E) neither add nor subtract; add
The government strives to operate at neither a deficit nor surplus budget in order to keep the federal budget
A) balanced. B) in line with the stock market. C) equal to that of other countries. D) equal to inflation.
In the figure above, if the interest rate is 8 percent, people demand $0.1 trillion
A) less money than the quantity supplied and the interest rate will rise. B) less money than the quantity supplied and the interest rate will fall. C) more money than the quantity supplied and the interest rate will fall. D) more money than the quantity supplied and the interest rate will rise.
Suppose you buy a new Tesla Model S. The battery that comes with the car is a(n)
A. intermediate good. B. financial good. C. final good. D. transfer good.