An insurance company can protect itself from moral hazard by: – McqOptions

MCQOPTIONS

1.	An insurance company can protect itself from moral hazard by:
A.	monitoring.
B.	imposing an â€˜excessâ€™.
C.	holding liquid assets
D.	diversification
Answer» C. holding liquid assets

Discussion

No Comment Found

Related MCQs

The quantity of present goods that must be forgone to increase future consumption by 1 unit iscalled
The risk premium for a capital investment by comparing the expected return on thatinvestment with the expected return on the entire stock market is measured by
An important mechanism through which sellers and buyers deal with the problem ofasymmetric information is
The concept of market signalling was first developed by
A scientific paper titled “The Tragedy of the Commons” was written by
Points where the slopes of the isoquants are equal
The marginal conditions must be satisfied for the attainment of a Pareto-efficient situation inan economy :
The sum of forgone interest and depreciation costs the machine’s owner must pay is the
Who argued that welfare is improved when ‘the greatest good (is secured) for the greatestnumber’
Several combination of commodities x and y that the economy can produce by fully utilizingall of the fixed amounts of labour and capital with the best technology available is depicted by I. production possibility frontier II. transformation curve III. production possibility curve