Concepts of moral hazard and adverse selection

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Based on the concepts of moral hazard and adverse selection to a situation from your professional life. Explain the situation and how it was resolved.

Banks taking risk never contemplated the financial impacts of housing prices declining relative to the bundling of mortgages that were sold to insurance companies that secured such risk practices. How does this apply to your professional life and the business model you are currently engaged in?

Reference no: EM132410775

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