The Government Safety Net Creates ________ Problem Because Risk-Loving Entrepreneurs

question 59

Multiple Choice

The government safety net creates ________ problem because risk-loving entrepreneurs might find banking an attractive industry.

• A)an adverse selection
• B)a moral hazard
• C)a lemons
• D)a revenue

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Definitions:

Polygraph Tests

A type of examination that measures physiological responses to questions in order to determine the truthfulness of the answers provided.

Heart Rate

The count of heart pulsations within a specific time frame, usually measured in beats per minute (BPM).

Sweating

The release of a saline fluid from the body's sweat glands, typically in response to heat, physical exertion, or stress, as a means of regulating body temperature.

Polygraph Examiners

Professionals trained to conduct lie detector tests to assess the truthfulness of a subject's statements.