When the financial system lacks the capability of making judgement about investment opportunities due to asymmetric information leading to potentially bad credit risks lending is subject to ?

When the financial system lacks the capability of making judgement abo

1.	When the financial system lacks the capability of making judgement about investment opportunities due to asymmetric information leading to potentially bad credit risks lending is subject to ?
A.	adverse selection
B.	moral hazard
C.	social goods
D.	hyperinflation
Answer» B. moral hazard

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When the financial system lacks the capability of making judgement about investment opportunities due to asymmetric information leading to potentially bad credit risks lending is subject to ?

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