_________ problem occurs when a person or institution does not have to bear the full consequences of its behavior and therefore assumes more risk than it otherwise would.

Question

Quizplus · Accepted Answer

Moral hazard is a situation where a person or institution does not have to bear the full consequences of its behavior, and as a result, may take on more risk than it otherwise would. This is because they know that they will not face the full financial or other consequences of their actions.

_________ Problem Occurs When a Person or Institution Does Not