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Define the concept of moral hazard

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Reference no: EM132700734

Problem 1

Define the concept of moral hazard. Give a personalized example of a moral hazard problem in banking. How would banks reduce this moral hazard problem?

Problem 2

Lebanon recently experienced a very high inflation. Many transactions are conducted in US dollars rather in Lebanese pound.

a. List the functions of money

b. Which function of money in particular explains what is currently happening in Lebanon?

Reference no: EM132700734

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