Identify whether each of the following events poses an adverse selection problem or a moral hazard problem in financial markets.
a. A manager of a savings and loan association responds to reports of a likely increase in federal deposit insurance coverage. She directs loan officers to extend mortgage loans to less creditworthy borrowers.
b. A loan applicant does not mention that a legal judgment in his divorce case will require him to make alimony payments to his ex-wife.
c. An individual who was recently approved for a loan to start a new business decides to use some of the funds to take a Hawaiian vacation.