Question: What is the moral hazard problem? A . The problem that managers of a financial firm will take on riskier investments because they believe the

What is the moral hazard problem?

.

The problem that managers of a financial firm will take on riskier investments because they believe the federal government will save them from bankruptcy.

.

The problem that managers may experience in distinguishing low

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risk borrowers from high

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risk borrowers before approving a mortgage.

.

The problem that managers of a financial firm may have more information about risky investments than the federal government does.

What is the moral hazard problem? A. The problem that managers

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