1. Moral and morale hazards are types of tangible hazards. a True b. False 2. Morale hazards involve dishonesty on the part of people who take out insurance. a. True. b. False. 3. Hazards increase the probability of losses, their frequency, their severity, or both. a. True b. False 4. Risks with a chance to either gain or lose are speculative risks. a. True b. False 5. When people shy away from risks and prefer to have as much security and certainty as is reasonably affordable, they are: a. risk seekers. b. risk lovers. c. risk averse. d. risk neutral. e. risk inviters