CFA Practice Question

There are 275 practice questions for this study session.

CFA Practice Question

When only those who are most at risk buy insurance so that insured losses tend to be greater than average, ______ occurs.

A. fraud
B. moral hazard
C. adverse selection
Correct Answer: C

User Contributed Comments 2

User Comment
jonan203 if only more people understood this concept.
jasonkwk adverse selection: information asymmetry occurs
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