Moral Hazard occurs when a person increases its exposure to risk because someone else bears the the cost of those risk(Insurance companies)
Explanation:
Moral Hazard usually occurs when their is information asymmetry,the risk taking party has more information than the risk incurring party.
The financial crisis of 2008 is the best example of the Moral Hazard Problem.
The Moral Hazard Problem arises because the managers of the financial firm took over riskier investments because they believed that the federal government will save them from the bankruptcy.
The dollar buys more yen<span> and the </span>dollar has<span> appreciated.</span>
Answer:
The correct answer is C
Explanation:
The amount of correct balance which is shown in the bank account at the month end is:
= Month end balance - Outstanding balance + Deposit in transit at month end + Check which was erroneously charged by bank
= $36,000 - $10,000 + $4,000 + $600
= $26,000 + $4,600
= $30,600
Therefore, the month end balance amounts to $30,600 in the bank account.
