"Moral Hazard" in the Field of International Political Economy Is

"Moral hazard" in the field of international political economy is when

A) banks have an incentive to make safer loans than they would make in the absence of a guarantee of a government bailout.
B) banks charge higher interest rates to high risk borrowers.
C) the practice of lending heavily to high risk borrowers makes a systemic financial crisis more destructive.
D) financial institutions have close ties to governments, sometimes through personal relationships.
E) banks believe that the government will bail them out if they suffer large losses on the loans they have made.