All of the Following Involve a Moral Hazard Problem Except

question 83

Multiple Choice

All of the following involve a moral hazard problem except

• A)an individual driving carelessly after buying a comprehensive insurance policy for a Ford Pinto.
• B)the IMF bailing Mexico out of a financial crisis, with promises to do the same for other nations that might face financial problems.
• C)the requirement of banking institutions that owners invest a substantial portion of their own capital in their bank.
• D)membership in FDIC (Federal Deposit Insurance Corporation)by your local bank.

---

Definitions:

Social Classes

Categorizations of society based on various factors including wealth, income, occupation, and education, influencing people's opportunities and life experiences.

Cultural Tastes

The preferences and inclinations that individuals or groups have towards art, food, entertainment, and other cultural expressions, often shaped by social, economic, and environmental factors.

Social Position

An individual's or group's status within the structure of a society, often determined by factors such as occupation, income, and education.

Jobs

Positions of employment where individuals perform specific tasks in exchange for monetary compensation, benefits, or both.