Question: What is the moral hazard problem? OA. The problem that managers may experience in distinguishing low-risk borrowers from high-risk borrowers before approving a mortgage.

What is the moral hazard problem? OA. The problem that managers may experience in distinguishing low-risk borrowers from high-risk borrowers before approving a mortgage. B. The problem that managers of a financial firm may have more information about risky investments than the federal government does. OC. The problem that managers of a financial firm will take on riskier investments because they believe the federal government will save them from bankruptcy

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