The Problem of Moral Hazard Has Led

question 24

Multiple Choice

The problem of moral hazard has led

• A) the governments of many developing countries to guarantee repayment of all loans.
• B) to higher growth rates in Latin America.
• C) to excessively speculative investment.
• D) to both privilege and responsibility of creditors.
• E) to stable investments with small and steady expected gains.

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Definitions:

Shannon

Without specific context, this could refer to a personal name. In information theory, Claude Shannon is known for founding digital circuit design theory and information theory.

Sternberg's Triangular

A theory proposed by psychologist Robert Sternberg that describes the dynamic components of love as intimacy, passion, and commitment.

Trust

A psychological state comprising the intention to accept vulnerability based upon positive expectations of the intentions or behavior of another.

Intimacy

A close, familiar, and affectionate personal relationship with another person.