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Moral hazard and adverse selection the deteriorate

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Moral hazard and adverse selection. The deteriorate quickly considered the moral hazard that the student may tend to do more risky things, and the adverse selection is that the result tend to be not that much people tend to rent the house that was quickly decorated, so it is a bad result that choose by the neighborhood. e. The safest borrowers are unlikely to need bank loans. Adverse selection. The safest borrower which always pay back the loan on time is because they don’t what to default and hurt their credit. So they tend to not borrow from bank even when they want it, it go against its interest of using the loan money from the bank, and use it. So it is a adverse selection. 4. Using T-accounts, show the initial effects of a $200 cash deposit into a checking
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account at Firstbank. Assets( Debts) Liabilities( credits) +$ 200 + $200 ( deposit) 5. Series D and E bonds are both discount bonds with a face value of $12.00. Series D bonds mature in one year, on January 18. Series E bonds mature in eight years, on the last day of class, January 27. As part of the assignment, please state your bids for both Series D and Series E bonds. You cannot spend more than your total funds available on January 17. You must divide your funds between the two markets. For example, if you have $60, you could spend $30 in each market, or $40 in one and $20 in the other, not $60 in each market. A Dutch Auction will be used to sell 100 bonds in each market. 12.00 for 2 share in Series D bond 12*2=24 and 3 share of series E bond, 3*12=36 Good luck!
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Moral hazard and adverse selection The deteriorate quickly...

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