What is moral hazard?

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Irybavxn

Economics

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What is moral hazard? 

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Explanation & Answer

In economics, moral hazard occurs when one person takes more risks because someone else bears the burden of those risks. A moral hazard may occur where the actions of one party may change to the detriment of another after a financial transaction has taken place.

http://en.wikipedia.org/wiki/Moral_hazard


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