Which of the Following Statements Is Correct

Multiple Choice

Which of the following statements is correct?

A) A high-risk person is more likely to apply for insurance than a low-risk person because a high-risk person would benefit more from insurance protection.
B) A low-risk person is more likely to apply for insurance than a high-risk person because a low-risk person would benefit more from insurance protection.
C) Insurance companies can fully guard against the problem of adverse selection,but they cannot fully guard against the problem of moral hazard.
D) Insurance companies can fully guard against the problem of moral hazard,but they cannot fully guard against the problem of adverse selection.