rohan9442 rohan9442
  • 04-05-2018
  • Social Studies
contestada

Explain the moral hazard problems inherent in responding to a crisis

Respuesta :

ahmedishaal ahmedishaal
  • 15-05-2018

The moral hazard issue with responding to a crisis is that once individuals discover that you may safeguard them out, they may continue going out on a limb and putting themselves in trouble later on accepting they will dependably be ransomed. There will dependably be a moral hazard issue for the giver of final resort, for example, the IMF. On the off chance that the cost of failure is evacuated, the incentive for within budgetary establishments to avoid potential risk and to act dependable is likewise expelled.

Answer Link

Otras preguntas

facts about cell give me 5
tried to be more more affective a.numerous b.productive c.shrewd
Which word best describes the mood of an elegy? a.cheerful b.hilarious c.playful d.sorrowful
How do you set apart a quotation within a quotation?
Unemployment has no effect on the economy. True False
is 32643 divisible by both 3 and 9
Which word best describes China's government? monarchy. oligarchy. communist. democracy. none of these
Give an example of changes that take place as cells in a multicellular organism differentiate
Steve has a regular deck of playing cards. He wants to know the probability of pulling two clubs from the deck in a row without replacing the first club. What
Find the sum of the given polynomials. ax + by + c, 2ax - 3by + c, and by - c a. 3ax - by + c b. 3a + x - bc c. 3ax + by - cd d. bx - 3bc + a