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s2008m [1.1K]
4 years ago
5

Identify the following situation currently faced by the World Bank as adverse selection or moral hazard.

Business
1 answer:
nevsk [136]4 years ago
6 0

<u>Solution and Explanation:</u>

<u>Moral Hazard </u>– It is a situation when a  firm or an individual modify their behaviour once the person gets what one was desired to achieve; example, insurance, funding, etc.

<u>Adverse selection </u>- The firm does not information on the consumer, and, sells the product at lower price assessing a lower risk when more information would have made the seller ask for a higher price

a) Moral Hazard

The country changes its project plan after the World Bank extends the loan; if the World Bank has put in conditions that it be used only for a canal, then the loan cannot be used

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Colleen Matthews had just turned 22 when her hard work finally started to pay off. Six months earlier Colleen graduated from a s
const2013 [10]

Answer:

Prosecutors of this case can use the net worth method to determine the extent these executives have been receiving  illegal incomes by computing their wealth at the beginning  and at the end of the period under investigation.

There will be an increase in the executives wealth, and since this increase cannot be traced to any legal income source, it will become taxable income, with the calculated penalties and fines.

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3 years ago
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kotykmax [81]

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1. $275 million

Yes

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3 years ago
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No

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I took it last year

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