Define moral hazard in a financial sense. What must be present for moral hazard to arise? Describe the moral hazard that occurred with the Great Recession of 2007 – 2009. How could this type of behavior be avoided in the future?
Sample Solution
Define moral hazard in a financial sense. What must be present for moral hazard to arise? Describe the moral hazard that occurred with the Great Recession of 2007 – 2009. How could this type of behavior be avoided in the future?
Sample Solution