Because of the Problems of Adverse Selection and Moral Hazard

question 221

Multiple Choice

Because of the problems of adverse selection and moral hazard, it has been suggested that the World Bank and International Monetary Fund

• A) make loans to the riskiest nations so that private investors will not be tempted to take a risk.
• B) loan only to countries that have free elections.
• C) not make loans to risky nations because there is a high demand for funds from safer nations.
• D) impose tougher preconditions on borrowers.

Recognize the importance of safety measures and ethical considerations in making home visits.

Identify client problem categories and the strengths that should be assessed in the social work process.

Grasp the evolution of social work practices and theories over time, especially during the 1960s.

Understand the significance of comprehensive assessment in generalist practice, including micro, mezzo, and macro dimensions.

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Definitions:

Self-fulfilling Prophecy

A belief or expectation that causes itself to become true, merely because the belief influences behavior towards making it happen.

Employees

Individuals who are hired by a business or organization to perform specific duties in exchange for compensation.

Attribution Theory

A theory that explains how individuals infer the causes of their own and others' behaviors and events.

Selective Attention

The focusing of conscious awareness on a particular stimulus while ignoring others, essential in processing information efficiently.