General Management · Professional Ethics
The ethical challenge known as 'Moral Hazard' in the banking sector arises primarily because:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Financial and economic transactions are devoid of any ethical considerations.
- 2Individuals or institutions take excessive risks knowing they are protected from negative consequences.✓
- 3Banking transactions involve physical currency notes which increase the vulnerability to theft.
- 4Decision-making processes in financial sectors are completely computerized.
Correct answer
Individuals or institutions take excessive risks knowing they are protected from negative consequences.
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