Which of Following Would Help Minimize Moral Hazard in the Financial

question 60

Multiple Choice

Which of following would help minimize moral hazard in the financial market?

• A)Raising the interest rate on loans
• B)Decreasing the down payment on a loan
• C)Eliminating the need for a borrower to provide collateral
• D)Requiring an insurance policyholder to carry a deductible
• E)An insurance company increasing the premium and reducing the deductible

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Definitions:

Pessimistic Image

A negative outlook or representation, often reflecting expectations of unfavorable outcomes.

Unconscious Forces

Psychological forces not immediately available to consciousness, influencing thoughts, feelings, and behaviors.

Neurotics

Individuals who experience emotional distress and maladaptive coping mechanisms, significantly impacting their functionality.

Perverts

A term used to describe individuals who exhibit sexual behavior considered deviant or outside societal norms.