Moral Hazard Arises from

question 88

Multiple Choice

Moral hazard arises from

• A)the difficulty of distinguishing good-risk borrowers from bad-risk borrowers.
• B)the likelihood that bad-risk borrowers are more likely to accept a loan than are good-risk borrowers.
• C)savers' difficulties in monitoring borrowers.
• D)borrowers' difficulties in locating savers.

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Definitions:

Cultural Change

The transformation of the culture of a society or organization, including its values, norms, and behaviors.

Socialization Processes

The methods through which individuals learn and adopt the norms, values, and behaviors that are necessary for functioning within a society or a specific group.

Cultural Change

The process through which a society or organization modifies its cultural patterns, beliefs, values, and behaviors over time.

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