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:

Self-Serving

Behaviors or attitudes that prioritize one's own interests, benefits, or welfare above those of others.

Gain Resources

To obtain additional resources or assets that improve one’s condition or position.

Stalking

Repeated, unwelcome intrusions that create concern for personal safety and fear in the target.

Verbal Aggression

The use of communication to attack another person’s self-concept.