A ________ Is When One Party in a Financial Contract

question 38

Multiple Choice

A ________ is when one party in a financial contract has incentives to act in its own interest rather than in the interests of the other party.

• A) moral hazard
• B) risk
• C) conflict of interest
• D) financial panic

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Definitions:

International Slave Trade

refers to the historical trade of enslaved people across international borders, particularly from Africa to the Americas, from the 16th to the 19th century.

Constitution

The basic rules and long-standing customs by which a government or another entity operates.

South Carolina

A state in the southeastern United States, known for its historic cities, subtropical beaches, and as being a site of significant Civil War battles.

House Of Representatives

One of the two houses of the United States Congress, the lower house, responsible for making and passing federal laws.