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Dmitriy789 [7]
3 years ago
14

Moral hazard is a barrier to financing global growth because:_______

Business
1 answer:
icang [17]3 years ago
8 0

Answer:

<u>c. there is the possibility that the funds are used for riskier behavior than the lender agreed to.</u>

Explanation:

True. The term "Moral Hazard" as used in an investment context, often refers to a scenario where one party with a <em>lesser risk burden</em> in a business agreement, <u>deliberately </u>takes investment risk that would be detrimental to others in the agreement who have a higher risk burden.

It is an unethical business practice; a moral hazard, and so acts as a barrier to investors who may want to finance global growth.

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