Question

Traditionally, the federal government provides disaster relief funds to flood victims so that they can rebuild their homes after a major flood. However, the government has recently denied requests to rebuild some homes that were situated in flood-prone areas. This action represents an attempt to ________ the moral hazard problem associated with building private homes in risky areas.

Answer 1

Answer:

Mitigate

Explanation:

Mitigation is simply defined as the capabilities that is needed to limit loss of life and property by lessening the impact of disasters.

Flood control act as set up in 1934 is simply an Act of Congress in the United States. It gave full rights to the U.S. Army Corps of Engineers for the designing and building of flood control projects.

Federal Disaster Relief Act was created in 1970. It is an established role of the federal government as the primary source of disaster funding. It consist of over 100 agencies that bore responsibility of Act.