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

---

Definitions:

Construction Contracts

Agreements between a contractor and client for the provision of construction services, detailing the project's scope, terms, and conditions.

Progress Payments

Partial payments made for work completed to date, common in long-term projects to provide cash flow to contractors or suppliers before the final product is delivered.

Contractor

A person or company that undertakes a contract to provide materials or labor to perform a service or do a job.

Billings

The total amount of business conducted or billed to clients over a particular period, often used in professional firms.