EBK ECONOMICS OF MONEY, BANKING AND FIN
11th Edition
ISBN: 8220103112550
Author: Mishkin
Publisher: Pearson Education (US)
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Chapter 10, Problem 6Q
To determine
The bank regulations designed to eliminate the problem of moral hazard.
Introduction:
Moral hazard is a situation to choose a risky outcome by one party and it is known that cost of outcome is borne by the other party. In general, moral hazard occurs when there is asymmetric information among the parties. Moral hazard also occurs when an insured party does not act as per required norms and violate the agreed terms.
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Chapter 10 Solutions
EBK ECONOMICS OF MONEY, BANKING AND FIN
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