Question 13 Which of the following statement about moral hazard is correct? Not yet answered Select one: Marked out of 1.00 P Flag question O a. Moral hazard is the problem created by asymmetric information before the transaction occurs. O b. Moral hazard in financial markets occurs when the potential borrowers who are the most likely to produce an undesirable outcome-the bad credit risk-are the ones who most actively seek out a loan and are thus most likely to be selected. O c. Moral hazard in financial markets is the risk that the borrower might engage in activities that are undesirable from the lender's point of view, because they make it less likely that the loan will be paid back. O d. One solution to moral hazard problem is screening. e. None of the choices is correct