Party insulated from risk

Assignment Help Business Management
Reference no: EM131593877

Research the current problem in Greece (I suggest a Wall Street Journal, for example). Relate the options available to creditor countries like Germany to the notion of MORAL HAZARD.

Moral hazard is the prospect that a party insulated from risk may behave differently from the way it would behave if it were fully exposed to the risk. Moral hazard arises because an individual or institution does not bear the full consequences of its actions, and therefore has a tendency to act less carefully than it otherwise would, leaving another party to bear some responsibility for the consequences of those actions. 

For example, an individual with insurance against automobile theft may be less vigilant about locking his car, because the negative consequences of automobile theft are (partially) borne by the insurance company.

Reference no: EM131593877

Questions Cloud

Analyze the history of changes in gdp : Analyze the history of changes in GDP, savings, investment, real interest rates, and unemployment and compare to forecast for the next five years.
Verify the triangle inequality for vectors : Verify the triangle inequality for vectors a = 2i - j - 2k and 3i + 2j + 3k.
What is meant by measures of dispersion : What is meant by measures of dispersion. What are they and in what type of variables are they appropriate
Artistic creations are ordinary income assets : Artistic creations are ordinary income assets in the hands of the creator.
Party insulated from risk : Moral hazard is the prospect that a party insulated from risk may behave differently from the way it would behave if it were fully exposed to the risk.
Find the equation of the plane : Find the equation of the plane with normal 2i - 3j + k that contains the point (1, 0, 1).
What is the best estimate of the current stock price : Its required return (rs) is 12%. What is the best estimate of the current stock price?
Difference between descriptive and inferential statistics : What is the difference between descriptive and inferential statistics. Provide an example of each? What assumptions apply to each
Make a new java application called weightedavgwithexceptions : Make a new Java application called "WeightedAvgWithExceptions" (without the quotation marks), according to the given guidelines.

Reviews

Write a Review

Business Management Questions & Answers

  Efficient allocation of scarce resources for the economic

This question is about Efficient Allocation of Scarce Resources for the Economic Well Being of a Nation. The three types of economic systems are Market Economy, Planned or Controlled Economy, and Mixed Economy. How does each handle the issue of Sc..

  Explain what impact you think the loss of steve jobs has

explain what impact you think the loss of Steve Jobs has, and will have, on Apple's primary stakeholder groups: customers, employees, and investors.

  Hospital corporation of america

For your Final Paper, choose one of the following health care organizations:Hospital Corporation of America (HCA)

  The role of hr and the organization

Using a health organization, write a 1 - 2 page paper in which you address the following:

  Where is the greatest potential for e-commerce businesses

Having systems in place to ensure that collected information is accurate and reliable represents which form of information security

  Whistle blowing utilitarian theory

"Anonymous Whistle-blowing is never morally justified because it violates the rights of the accused to their accusers." Is this statement is true, according to the utilitarian theory? Carefully explain the theory and be specific.

  Richard bianco a carpet layer in training was serving

Richard Bianco a carpet layer in training was serving to install carpet on the second floor of an unfinished house. He had used the stairs through the day without carefully examining the staircase's wooden banister

  Investment in human capital

Discuss how your college education could be considered an investment in human capital. What is the opportunity cost of your degree? Reference: Chapter 1, section 1.1: Economics and Chapter 2, section 2.1: Limited Resources.

  Imagine you are the ceo of a growing international

Imagine you are the CEO of a growing international manufacturing organization in need of corporate restructuring. Select an organizational structure functional, matrix or projectized and assess the influence on project roles

  Define social responsibility

Define social responsibility. What are the similarities and differences between both companies regarding their corporate social responsibility efforts?

  Should john smythe sell the names

Should John Smythe sell the names? - Does the AMA Statement of Ethics address this issue? - Write a brief paragraph on what the AMA Statement of Ethics contains that relates to John Smythe's dilemma.

  Explain how can auditor tolerate using work that is known

Explain how can the auditor tolerate using work that is known to be incorrect? Explain why might an individual such as assistant controller in industry commit errors in arriving at a year-end adjustment?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd