Moral Hazard Can Be Reduced By

question 47

Multiple Choice

Moral hazard can be reduced by:

• A)the use of 100% insurance coverage.
• B)imposing a deductible on insurance coverage.
• C)taking away personal stakes for people with private information.
• D)offering fewer incentives to people with private information to act in a less risky manner.

Identify the spontaneous and non-spontaneous sources of financing.

Interpret the impact of capital intensity and operational capacity on financial needs.

Understand how financial planning aids in setting goals and ensuring internal consistency.

Comprehend the significance of planning for both spontaneous and planned financial needs.

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Definitions:

BMD

Bone Mineral Density, a measurement that indicates the density and strength of bones.

Arthralgia

Medical term for joint pain.

Bursitis

An inflammation of a bursa, typically one in the knee, elbow, or shoulder, leading to pain and restricted movement.

Craniectomy

A surgical procedure involving the removal of a portion of the skull to relieve pressure on the brain or to remove a brain tumor.