​An Example of Moral Hazard Is

question 4

Multiple Choice

​An example of moral hazard is

• A)​workers working diligently even though the boss is not looking
• B)health care insured workers dieting and exercising
• C)drivers of safer cars texting on their phones while driving
• D)​borrowers investing their loan proceeds exactly as the bank requires

Grasp the implications of spot and forward markets on currency values.

Explain the International Fisher Effect and its relevance to real and nominal interest rates across countries.

Describe the mechanics and purposes of various international financial agreements and instruments such as Eurobonds and Note Issuance Facilities.

Understand the process and implications of covered interest arbitrage.