KAYLA2601 KAYLA2601

28-12-2019
Business

contestada

A person takes out a car loan at a bank, but actually uses the money to play the lottery. This situation is an example of which problem banks face in lending?

a.adverse selection
b.moral hazard
c.interest rate
d.risk liquidity.

Respuesta :

Karabo99 Karabo99

28-12-2019

Answer:

b.moral hazard

Explanation:

If a person borrow from bank to buy car but actually he borrow to pay lottery. in this case the person will face Moral Hazards.

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