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Basic Question 9 of 15
When only those who are most at risk buy insurance so that insured losses tend to be greater than average, ______ occurs.
B. moral hazard
C. adverse selection
A. fraud
B. moral hazard
C. adverse selection
User Contributed Comments 2
| User | Comment |
|---|---|
| jonan203 | if only more people understood this concept. |
| jasonkwk | adverse selection: information asymmetry occurs |
I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
Learning Outcome Statements
describe types of financial intermediaries and services that they provide
CFA® 2024 Level I Curriculum, Volume 3, Module 1.