Example of moral hazard, Which of the following is example

Example of moral hazard

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Reference no: EM13815115

Which of the following is example of moral hazard?

a. High-quality products being driven out of market by low –quality products.

b. A local charity raising insufficient funds because no one contributes, expecting that their neighbours will.

c. A bakery defaults on its loan because of a new consumer fear of carbohydrates.

d. A corporation uses a business loan secured for one investment on another, higher – risk investment

Reference no: EM13815115

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