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Let as assume that you are operating in a financial market as an agent. You may borrow money to make investment or use someone's money
Let as assume that you are operating in a financial market as an agent. You may borrow money to make investment or use someone's money to invest.If the agent is insured for losses from making risky investment, should the lender be worried about the agent? Can we call the situation a moral hazard or adverse selection?
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