Topic Videos

Moral Hazard and Financial Instability (Financial Economics)

Level:
A-Level, IB
Board:
AQA, Edexcel, OCR, IB, Eduqas

Last updated 4 Apr 2018

This revision video explores the relationship between moral hazard and financial instability.

Moral hazard happens when an agent is given an implicit guarantee of support in the event of making a loss – for example insurance pay-outs or the prospect of a state bail-out.

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