Moral Hazard Is Said to Exist When One Party to a Transaction

Multiple Choice

Moral hazard is said to exist when one party to a transaction

A) is not able to take advantage of the other party.
B) has the incentive to,and is able to,shift costs to another party in the transaction.
C) is subject to a hostile corporate takeover.
D) purchases insurance because they know they are involved in risky activities.
E) has no morals.